![]() ![]() Fiscal accounts still in deficit, steady current account surplus Inflation will inch down but it will hover above the 2010-2022 average of 2% on the back of robust demand for housing and tourism inflows. Still, the government’s diversification efforts will increase non-oil exports, albeit from a low base. However, import growth is expected to accelerate as well from the previous period in line with the Kingdom’s infrastructure plans creating an import demand for capital goods, raw materials, and machines. This will sustain the contribution of net exports to growth. Saudi Arabia’s oil output is expected to increase around 3% in 2024 on an annual basis, after falling nearly 7% in 2023. Following the OPEC+ announcement in June 2023 on extending the production cuts until end-2024, Saudi officials confirmed in early September 2023 an extension of their voluntary oil output cut of 1 million barrels per day until the end of 2023. More foreign investments are expected after the government announced in 2021 that it would no longer work with foreign companies that do not have their regional headquarters located in the Kingdom after 2023. The government aims to attract more private investment, both domestic and foreign, through privatisation and partnerships. Investment (around 30% of GDP) will be led by the government in order to achieve its ambitious Vision 2030 plan including expansion of the manufacturing sector and big-ticket projects (i.e., development of six-giga projects worth USD 7 trillion like the Red Sea project, Neom, Amaala, Qiddiya that mostly aim at establishing tourism, entertainment and technology centres etc.). Tourism receipts are expected to rise to USD 26 billion in 2024, i.e., around 3.5% of GDP. Decline in inflation and increased tourism revenues will support private consumption (40% of GDP). ![]() ^ "Brazil's oil and gas output hits fresh record in September".Growth to return on robust investment spendingįollowing the 2023 slowdown due to the unfavourable base effect, cuts in oil production, and lower energy prices, Saudi growth is due to increase in 2024, mainly driven by investment and private consumption.^ "China Sept crude oil output up 0.3 % on yr - stats bureau".^ a b c d e f "Oil Market Report - September 2023 – Analysis".Field Production of Crude Oil (Thousand Barrels per Day)". "US oil production hits all-time high, conflicting with efforts to cut heat-trapping pollution". crude oil exports reached a record high in first half of 2023". ^ "Oil and petroleum products explained".^ "OPEC+ not to increase oil production in April".^ a b "Annual petroleum and other liquids production".List of countries by proven oil reserves. ![]()
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