Standard & Poor's (S&P's) Global Rating agency updated its outlook for Saudi Arabia to positive and upgraded its short and long term foreign and local currency sovereign credit ratings to A-/A-2.
In a statement on Saturday, S&P said the positive future outlook reflects the strength of the Kingdom’s GDP growth and financial policies at the backdrop of its success in recovering from the repercussions of the pandemic.
It also cited the country’s sustainability of government reform programs drive, as well as the increasing growth of the non-oil economy, which has made great strides in supporting its financial and foreign indices.
The agency expected Saudi Arabia’s GDP to grow to its highs in 10 years to a ceiling of 7.5% in 2022 with an expected financial surplus in the state budget of about 6.3%.
It forecast a growth of the Saudi economy product capacity and a drive of the growth in the long term due to efforts of developing the general finances and mega economic reforms.
Regarding flexibility and performance, the agency expected support of the financial credits in 2022 - 2025 due to governmental efforts in developing the public finances and commitment of improving the spending and efficiency of expenditure despite the surge in oil prices.
It also said it forecast no dramatic rise of sovereign debts costs on the Kingdom as most of the public debt portfolio is running at a fixed rate.
The agency described the inflation rates in the Kingdom as relatively low compared to its counterparts, adding that those rates would be under control given the government’s subsidizing of fuel and food prices in addition to linking the local currency with the relatively-strong US dollar.
