Economists: We are optimistic about overcoming a year of “challenges” … and 7 drivers for improving GDP

A number of experts and economists agreed that the decline in the deficit in the new budget to 157 billion riyals is the biggest sign of good in 2021 and one of the most important fruits of the resolute policy of the Kingdom’s government, noting that the budget numbers focused on expanding the attraction of various investments in the private sector and reducing dependence on oil from Through numerous programs, chiefly the financing of the Public Investment Fund, which seeks to reduce the deficit and provide quality investments and jobs, experts emphasized that there are 7 reasons for improving GDP growth and encouraging investment attraction in 2021, which are the recovery of economic activities, the improvement of the Kingdom’s trade balance, and the growth of global supply chains And the diversity of government initiatives in support of financial stability, in addition to the government continuing to implement structural reforms, developing the private sector and providing more investment opportunities.

The kingdom won the bet

Economist and businessman Muhammad Ali Al-Ghaithi said: The current year’s budget showed remarkable recovery in economic activity in the Kingdom despite the great challenges that faced all countries of the world, as the Kingdom won the bet in light of a global crisis that caused a violent economic shock on a large scale, and the figures announced by the budget were revealed. On the return of confidence to the business sector and consumers and the focus on attracting various investments, as a result of the wise measures taken by the wise leadership at the height of the crisis, as its primary goal was to preserve the safety of citizens and residents, by introducing numerous initiatives to mitigate the effects of the Corona pandemic.

He indicated that «the Public Investment Fund intends to pump hundreds of billions into the Saudi economy in the next year and the following years, which will enable the emergence of new sectors, create more job opportunities and provide additional revenues for the state», indicating that these assurances give more economic stimulus, and reveal the Fund’s ability to Compensating for the deficit estimated at 141 billion riyals, knowing that it decreased remarkably from 298 billion riyals.

We expect optimistic results that exceed estimates

The economist, Eng. Muhammad Aqil, emphasized that the greatest strengths in the Kingdom’s 2021 budget are the focus on continuing economic growth, strengthening the role of the private sector, and continuing the path of privatization that the Kingdom started in the past three years, which leads to optimistic results that will exceed the strict estimates included in the financial figures of the budget. He noted that one of the most important positive aspects of the budget for the year is the difficult challenges, the government’s continuing approach to financial disclosure and transparency, which is one of the pillars in the process of developing the preparation and implementation of the state’s general budget.

Great financial achievement despite the storms

Economic Dr. Saleh Bakr Al-Tayyar, head of the Arab-European Studies Center in Paris, considered that the biggest promise of the 2021 budget is the state’s insistence on reducing the budget deficit from 298 billion riyals this year to 141 billion riyals during the next year, which means that there are 157 billion A decline in the deficit, which represents a major financial achievement, in light of the economic storms facing the world, the decline in oil prices, the high cost of the general budget bill, which in the new year reaches 151 billion riyals, the education budget that will reach 186 billion riyals, health and social development Amounting to 175 billion riyals, stressing the strict measures that the state deals with, in financial aspects, with the aim of strengthening various sectors and accelerating the rates of comprehensive development and economic growth.

He explained that the Ministry of Finance stressed 7 reasons for the expected improvement in the Kingdom’s GDP growth rates in 2021, as preliminary estimates indicate real GDP growth of 3.2% in 2021, and its continued growth in the medium term in light of local and global financial and economic developments.

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