Saudi Arabia Macroeconomic Developments
- According to the General Authority for Statistics (GAStat), Saudi Arabia’s annual inflation rate hit 1.7 percent in September, largely driven by a 9.3 percent increase in housing, utilities, and fuel prices. Housing rents rose by 11.2 percent, with apartment rentals up 10 percent, reflecting limited supply and population growth.
- The World Bank revised Saudi Arabia’s 2024 GDP growth forecast to 1.6 percent, with a rebound to 4.9 percent in 2025. The rise is expected as oil production increases, driving a 6.6 percent oil GDP growth in 2025 and 5.1 percent in 2026, alongside steady non-oil sector growth.
- Saudi Arabia’s pension system rating improved from C to C+, with its Global Pension Index score increasing to 60.5 points in 2024, up from 59.5 last year, driven by ongoing reforms. This upgrade places Saudi Arabia alongside the U.S. according to the Mercer CFA Institute Global Pension Index.
