Unbelievable but true: countries with the largest oil reserves have every chance of achieving high rates of economic growth. The striking example is Saudi Arabia, which has grown from an impoverished backwater of desert nomads to an economic powerhouse in just 25 years.
This year, Saudi Arabia has been even more fortunate. The price of oil is gaining steadily, thus supporting its economy. According to forecasts, the country will soon join the ranks of the trillion-dollar economies, with gross domestic product surpassing $1 trillion for the first time in its history. Just a year ago, Saudi Arabia was the 19th largest economy in the world, with GDP of $834 billion. The US Energy Information Administration predicts that in 2022, the cost of a barrel of Brent crude will average over $104, up from $70.89 in 2021 and only $41.69 in 2020. This means that the Saudi government’s coffers will be poured with huge oil revenues.
Riyadh has recently reported that Saudi Arabia's oil revenues soared by 90% year-on-year. This allowed the kingdom to achieve a $20.8 billion budget surplus in the second quarter. During this period, the country's economy expanded by 11.8%, buoyed by significant growth in oil and non-oil activities by 23.1% and 5.4% respectively, data released by the government on July 31 showed.
