Saudi Arabia will overtake India as fastest-growing economy this year

Riyadh: Saudi Arabia is emerging as the potential rival to India in terms of growth rate, claims a report.

The data released by India’s Ministry of Statistics and Program Implementation suggest the Kingdom’s better performance in this fiscal.

The kingdom is expected to outpace India in 2023 growing with 7.6 percent gross domestic product growth, thanks to the much-needed boost from energy prices.

India will be pegged in the second position with an expected GDP growth rate of 7 percent in the fiscal year ending March, Arab News reported.

“The growth in real GDP during 2022-23 is estimated at 7 percent, compared to 8.7 percent in 2021-22,” said the Indian ministry in a statement.

The union budget to be presented on Feb 1, 2023 will consider ‘spending priorities’ based on the latest estimate of growth rate.

However, India earlier this year projected seamless growth but the report said the fiscal policies by Reserve Bank of India to combat inflation blunted growth curve.

In the upcoming policy review meeting, India's central bank is likely to further hike its benchmark rate, which was raised by 225 basis points so far this fiscal year.

In December last year, Saudi Arabia reported a budget surplus of SR102 billion ($27.13 billion) for 2022.

It is SR12 billion higher than the previous estimate, according to the report.

Saudi Crown Prince Mohammed bin Salman previously attributed the surplus to the Kingdom’s reforms in the operating model of the public sector and economy.

The budget surplus will be used to boost government reserves, support national funds, and strengthen the Kingdom’s financial position, he said.