Abdullah Al Alami
The World Bank raised its forecast for the growth of the Saudi economy for 2023 at 3.8%, compared to 3.3% in previous forecasts, and reserve assets abroad rose to 1.7 trillion riyals. The Saudi gross domestic product also recorded a rise in constant prices on an annual basis by 9.9 percent, during the first quarter of this year.
These developments, in addition to Saudi companies raising their capital, are positive indicators. This trend supports the strategies of the concerned companies, especially in the areas of expansion and growth. Also, investors will feel reassured when maximizing the total return on their savings, especially in the case of increasing and diversifying corporate investments and seizing the expected growth opportunities.
Saudi Arabia is currently witnessing an acceleration in the growth of the digital economy, and the financial technology sector is also recording remarkable growth. Government agencies have also achieved positive results in financial sustainability, which, we hope, will be directed to priority expenditures.
However, not everything is positive; global markets suffered at the end of last week from a sharp decline, which was also reflected in the Gulf markets. We are not isolated from the rest of the world, and it is normal for our markets in the Gulf to feel the pressure as well. The Saudi stock market fell 2.2%, the lowest closing in 4 months, down by 2.18%, or 268.9 points, to the level of 12,053 points.
Also, higher oil prices may increase economic pressures and thus raise inflation. This means high prices for food and imported goods, which is what preoccupies the world's economists today.
How did the world deal with high inflation? The US Federal Reserve and the Bank of England may raise their rates, while the Swiss Central Bank and the Bank of Japan may stick to their stimulus policies without any significant change.
