The Saudi economy recorded a better performance than most of the G20 countries during the second quarter, despite the Corona crisis and the decline in oil prices. Despite the impact of the Corona pandemic and the collapse of oil prices during the second quarter of 2020, the Kingdom’s economic growth rate of 7% compared to the same period last year was among the lowest among the G20 countries. According to OECD data, Saudi Arabia ranked fifth among the group’s countries, while China came in first place, as it was the only country among the group’s countries that achieved an increase in gross domestic product, by 3.2%. The decline in the GDP growth rate in India reached 23.5%, 21.7% in the United Kingdom, and 9.1% in the United States of America.
The organization said that economic activity in the group’s countries was greatly affected by the precautionary measures taken to confront the outbreak of the Coronavirus. The Ministry of Finance expected that the real GDP will record a decline of 3.8% in 2020, and an improvement in economic performance during the second half of the year, according to the main indicators of domestic demand, especially the improvement in private consumption indicators, and some indicators of production and activity performance. She indicated that the measures taken by the government, in addition to the continuous decline of the pandemic, have contributed to this improvement. According to the ministry’s estimates and the International Monetary Fund’s estimates, the decline in the Kingdom’s GDP growth rate for the whole year will be better compared to most of the G20 countries. The strength of the Saudi economy is confirmed by Fitch’s confirmation of the kingdom’s rating at “A” with a stable outlook. Moody’s also confirmed the rating at “A1”, and “Standard & Poor’s Global” agency confirmed the rating at “A- / A-2”. With a stable outlook. The agencies attributed the Kingdom’s classification to its financial strength, including foreign reserves, which amounted to $ 453 billion, to rank fifth in the world among the largest countries with foreign exchange reserves, according to the latest announced data.