Saudi Arabia’s economy grew 6.8 percent annually in the third quarter, the fastest pace since 2012, as the world’s largest oil exporter benefited from rising crude prices.

Its seasonally adjusted quarterly real gross domestic product rose 5.8%, quarter over quarter, according to the UK. General Statistical Authority.

“This increase in GDP is the result of strong growth in oil activities of 12.9%. Non-oil activities grew by 1.6% and government activities grew by 1.4%, ”the government agency said.

The GDP of the Arab world’s largest economy is expected to grow 2.4% this year and 4.8% in 2022, thanks to the country’s rapid and effective response to the pandemic and the growth of its non-oil sectors, the International Monetary Fund said in July. .

that of Saudi Arabia IHS Markit Purchasing Managers Index was 57.7 in October, the second highest reading recorded since the start of the pandemic. Despite a decline of 58.6 in September, he pointed to a marked improvement in business conditions in the kingdom. A reading above 50 indicates economic expansion, while anything lower indicates contraction.

The kingdom’s non-oil economy is expected to grow 4.3 percent this year, the IMF noted.

Oil prices have reached multi-year highs and have risen more than 60% since the start of the year, helping to consolidate the kingdom’s finances. The country recorded a budget surplus of 6.7 billion Saudi riyals ($ 1.79 billion) in the third quarter, generating 243.3 billion riyals in revenue, its first since 2019. Oil revenues soared 60% per year to reach 147.9 billion riyals, the ministry said.

Non-oil revenues rose 33% to 299.5 billion riyals this year, while oil revenues jumped 25%. The kingdom’s non-oil PMI continued to rise in October to reach 57.7, the second highest value on record since the start of the pandemic.

Oil-exporting countries are expected to have large surpluses this year and next amid rising crude revenues, according to a report by the Institute of International Finance.

“Net hydrocarbon exports and government hydrocarbon revenues represent more than half of total exports and total government revenues, respectively among major oil exporters,” the IIR said.

“As a result, 2020 budget deficits will turn into large surpluses in 2021 and 2022 in most oil exporters except Nigeria, Kazakhstan and Algeria.

The kingdom’s economy “seems to end the year on a solid footing,” Capital Economics said in a report. research note Tuesday.

“With oil production set to increase further, remaining virus-related restrictions to be relaxed and the possibility of the government easing fiscal policy, the recovery will accelerate in 2022,” he said.

Capital Economics predicts that the kingdom’s economy will grow 7.3% in 2022.

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Update: November 9, 2021, 12:33 p.m.