Moody’s: Saudi Economy to Grow 3% over 2021-24; Balance Sheet Likely to Weaken

Saudi Arabia’s economy is anticipated to grow at an average rate of around 3% during 2021-24 according to Moody’s Investors Service (Moody’s). Although this growth is almost double the average seen during 2015-19 (1.6%), it is lower than the 4.1% growth reported during 2005-14. Furthermore, Moody’s is expecting real Gross Domestic Product (GDP) to drop by 4.5% in 2020, following the shock of the COVID-19 pandemic. Higher fiscal deficits are expected to increase government debt to over 35% of GDP, from 22.8% in 2019.

According to Moody’s, Saudi Arabia’s credit profile reflects a strong, albeit weakening government balance sheet, reinforced by moderate debt levels, adequate fiscal and...