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The Ministry of Finance expected to maintain positive economic growth rates this year and in the medium term, backed by structural reforms and sectoral and regional strategies in line with Vision 2030.
In its Pre-Budget Statement 2024, the ministry expected real gross domestic product (GDP) to grow by 0,03%, driven by the non-oil GDP that is forecast to grow by 5.9% in light of the positive performance of both economic indicators, strategies and programs implemented to enhance tourism and attract investment to the Kingdom during the first half of 2023.
Inflation is expected to rise by nearly 2.6%. Inflation rates are expected to remain at acceptable levels in the medium term due to the proactive measures and policies taken by the government to contain price increases, set a gasoline price cap, ensure an abundance of food stocks and support social protection programs.
Real GDP is projected to grow by 4.4% in 2024, thanks to non-oil GDP growth, supported by the growth in the non-oil activity GDP amid expectations that the private sector will continue to lead economic growth and job creation. The Kingdom’s trade balance is expected to improve, with the Saudi Vision 2030 realization programs, initiatives and regional and sectoral strategies will continue to support positive growth rates, the ministry added.
These positive expectations come in light of the actual performance of the Saudi economy since early 2021.
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