RIYADH: 海角直播鈥檚 gross domestic product is expected to grow at the highest rate in 10 years , to 7.5 percent in 2022, as the country steadily recovers from the pandemic, according to credit rating agency S&P.聽
S&P also聽updated its outlook for 海角直播 to positive, and聽assessed the Kingdom鈥檚 short and long-term foreign and local currency sovereign credit ratings to A-/A-2, Saudi Press Agency reported.聽
S&P report noted that the surplus聽in the Kingdom鈥檚 state budget is expected to be about聽6.3 percent in 2022.聽
The credit rating agency further added that the positive outlook reflects its strength of GDP growth, healthy financial policies, and government reforms that aim to diversify the economy, which has been oil-dependent for several decades.聽
S&P noted that the Saudi economy鈥檚 productive capacity is expected to grow in the long run, as a result of developing the general finances and significant economic reforms.
The agency pointed out that there will be no dramatic rise in sovereign debt costs in the Kingdom, as most of the public debt portfolio is running at a fixed rate.聽
S&P added that inflation in 海角直播 is relatively low in comparison to its counterparts, and it is likely to remain under control as the government subsidizes fuel and food prices, along with聽tying the local currency with the relatively-strong US dollar.聽
A recent data released by the General Authority for Statistics revealed that 海角直播鈥檚 annual inflation rate accelerated to three percent in August, up from 2.7 percent in July. The uptick in the Consumer Price Index is driven by a rise in food and beverage prices, which surged four percent in August.聽
鈥淭he food and beverages prices were the main drivers of the inflation rate in August 2022 due to their high relative importance in the Saudi consumer basket with a weight of 18.8 percent,鈥 GASAT said in a press release.
Earlier in June, credit rating agency Moody鈥檚 Investors Service had affirmed 海角直播鈥檚 rating at 鈥楢1鈥 with a stable outlook, primarily driven by the government鈥檚 fiscal policy effectiveness.
According to Moody鈥檚 report, the Kingdom鈥檚 GDP聽will grow at an average rate of 5 percent in the period 2021-2023.聽
