Saudi Arabia reports budget surplus from oil revenues

06/09/22

Saudi Arabia’s economy is predicted to grow at 7.6% this year according to the International Monetary Fund’s (IMF) World Economic Outlook 2022 report.

Its estimates for Saudi Arabia contradict the global outlook and suggest the highest growth rate among world economies. The IMF also increased its expectations for the Saudi Arabian economy in 2023.

In comparison, the IMF lowered its global forecast for 2022 and 2023 influenced by the slowdown in growth in the three largest economies - America, China, and the European Union.

The IMF recognised the strength of Saudi Arabia’s economy and its enviable financial position. Consequently, it observed the country was making a strong recovery, supported by the rise in oil prices combined with increased production, liquidity support and the momentum of reforms including the government’s implementation of the Vision 2030.

In addition, Saudi Arabia’s total revenues reached SAR 370.4 billion (USD 98.8 billion) equivalent to a 49% year-on-year increase according to the Ministry of Finance in Saudi Arabia. The expenditures reached SAR 292.5 billion (USD 78 billion) up 16% from last year.

Oil revenue primarily led the surplus, surging 89% to SAR 250.36 billion (USD 66.8 billion) in the second quarter, while non-oil revenue during the period was up 3% to SAR 120 billion (USD 32 billion).

Similarly, the General Authority for Statistics (GASTAT) reported that Saudi Arabia registered an 83.4% increase in its overall merchandise exports to reach SAR 144.1 billion (USD 38.3 billion) in May 2022. The increase was mainly due to oil exports, which rose by SAR 59.7 billion (USD 15.9 billion) or 106% in July year-on-year. Non-oil exports, including re-exports, increased by 26.7% year-on-year in May 2022, rising to SAR 27.9 billion (USD 7.44 billion) from SAR 22 billion (USD 5.86 billion) over the same period.

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