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Saudi Arabia’s economic growth is expected to accelerate to 1.6 percent next year, and a further 2.2 percent in 2021, the World Bank projected in a new report on Wednesday.
However, the World Bank forecasts Saudi real Gross Domestic Product (GDP) growth to slow to 0.5 percent in 2019, compared with 2.4 percent last year.
Overall, economic growth in the Middle East and North Africa (MENA) region is projected to slow to 0.6 percent this year compared with 1.2 percent last year, according to the latest edition of the World Bank’s MENA Economic Update titled "Reaching New Heights: Promoting Fair Competition in the Middle East and North Africa".
Egypt’s GDP continues to lead growth in the region as its overall macroeconomic environment has improved following the country’s exchange rate, fiscal, and energy reforms, World Bank noted. As a result, Egypt’s economy grew to 5.4 percent in the first half of 2019, up from 5.2 percent in 2018.
"Countries in the region have implemented bold reforms to restore macroeconomic stability, but the projected growth rate is a fraction of what is needed to create enough jobs for the fast-growing, working-age population," said Ferid Belhaj, World Bank Vice President for the MENA region.
In the medium-term, the World Bank expects real GDP in the MENA region to grow at 2.6 percent in 2020 and 2.9 percent in 2021, while it added that bolder reforms are needed to boost privates sector in the region.
"The lack of fair competition is holding back the development of the region’s private sector, which history has shown to be the source of broad-based growth and jobs," said Rabah Arezki, World Bank MENA Chief Economist.
"Countries in the region have an opportunity to transform their economies by levelling the economic playing field, and creating business environments that encourage risk-taking and reward innovation and higher productivity."
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