Saudi is Expected to Beat India This Year in Terms of Economy

  • Publish date: Tuesday، 10 January 2023
Saudi is Expected to Beat India This Year in Terms of Economy

Due to increases in energy prices, Saudi Arabia is expected to overtake India as the leading economy with the quickest rate of growth in 2023.

Saudi Arabia is anticipated to overtake India with a 7.6 percent growth in its gross domestic product, according to official figures given by India's Ministry of Statistics and Program Implementation, as the Kingdom's economy continues to benefit from rising income from higher petroleum prices.

The declining demand has limited the growth prospects of Asia's third-largest economy, placing India in second place with an anticipated GDP growth rate of 7% in the fiscal year ending in March.

The Indian ministry said in a statement, “The growth in real GDP during 2022-23 is estimated at 7 percent, compared to 8.7 percent in 2021-22.” Using this estimate, the Indian government will choose its top spending objectives for the 2019 union budget, which will be unveiled on February 1, 2023. This budget will also be the last full-year spending plan for Prime Minister Narendra Modi's administration before elections in 2024.

Saudi Arabia announced a larger-than-anticipated 2022 budget surplus in December of SR102 billion ($27.13 billion), SR12 billion more than was expected. Crown Prince Mohammed bin Salman of Saudi Arabia claimed that the achievement of a budget surplus was made possible by the Kingdom's reforms in the way the economy and public sector operate. He added that the budget surplus would be utilized to strengthen the Kingdom's financial position in the face of global economic headwinds by increasing government reserves and national funds. In accordance with the objectives set forth in the Kingdom's Vision 2030, he also said that the government intended to prioritize capital spending in the 2023 budget based on regional and sectoral strategies.

Saudi Arabia is predicted to grow by 7.6 percent in 2022 and 3.7 percent in 2023, according to the International Monetary Fund's World Economic Outlook Report from last month.

The IMF expected 8.3 percent growth in 2022, before it moderated to 3.7 percent and 2.3 percent in 2023 and 2024, respectively. The World Bank projection was slightly greater than the IMF projections.

The Kingdom has a moderate inflation rate of 2.9 percent, the lowest among G20 nations, according to the World Bank, which also revealed in November that Saudi Arabia had the fastest-growing economy among the Group of 20 countries.

Follow us for more amazing beauty, fashion and luxury content on Instagram and Facebook. Join us in our newsletter. Sign-up here.

Follow us on our Whatsapp channel for latest news