On Friday, rating agency Standard & Poor’s revised the future outlook for Saudi Arabia from stable to positive, due to improved GDP growth and fiscal dynamics in the medium term.
The agency confirmed that Saudi Arabia’s credit rating was fixed at A-/A-2.
Saudi Arabia’s gross domestic product rose 3.3% in 2021, according to official statistics issued a few days ago, in a shift from a 4.1% contraction in 2020 when oil prices collapsed and economies around the world were exposed to the Corona pandemic.
Oil prices jumped 50% last year as demand recovered and then jumped above $100 a barrel to a 14-year high in February following Russia’s attack on Ukraine prompted Western countries to urge major producers to increase production.
Standard & Poor’s said that Increased demand boosted Saudi crude oil More importantly, some countries are trying to reduce imports from Russia.
In its report, the agency expected that the real GDP growth of Saudi Arabia for the current year would rise to 5.8%, and that the average would reach 2.7%, during the period from 2023 to 2025.
The agency said in a statement that “the rise in international oil prices and the increase in the volume of production, along with the recovery from the Covid-19 pandemic, support the growth dynamics of public finances and GDP in Saudi Arabia.”
