The OECD predicts Saudi inflation to stay below other G20 economies till 2023
As global food and commodity prices spike up, Saudi Arabia is expected to enjoy lower levels of inflation, according to a forecast from the Organization of Economic Cooperation and Development
Saudi Arabia’s gross domestic product is expected to grow by more than double the rate of other G20 economies, the OECD said.
The Saudi economy will grow by 7.8 percent in 2022, while G20 economies are expected to grow by 2.9 percent, reported by OECD in its recent economic outlook.
The OECD also revised up the Saudi GDP growth in 2023 to 9.0 percent, tripling the G20 average growth, while the Kingdom’s inflation rate will remain below the G20 average of 6.3 percent.
Moving on to inflation within the G20 economies, Saudi Arabia is expected to be outperforming its peers as the only country showing a decrease in inflation rate year-on-year, from 3.1% in 2021 to 2.2% in 2022.
Although the Kingdom’s inflation rate is expected to increase to 2.7% in 2023 — a 0.5%- point increase from 2022 — it will achieve the lowest inflation levels among the G20 economies and the third lowest worldwide, following Japan and Switzerland.
As Saudi Arabia has a lower dependency on wheat exports from Ukraine and Russia than other countries in the region and a robust local crude oil production, the Saudi Arabian economy is in a good position next year.
Source: Arab News