Saudi Arabia is set to overtake India as the fastest-growing major economy in 2023 after the latter lost growth due to weak demand at home and abroad.

The Kingdom’s real gross domestic product grew by 8.8 % in the third quarter of 2022 compared to the same period in 2021, driven by an increase in oil activities, according to a report released by the General Authority for Statistics (GASTAT).

According to Bloomberg, Saudi Arabia is expected to outpace India with 7.6% gross domestic product growth in 2023.

This follows a 6.8% expansion forecast by the Reserve Bank of India, made by the end of March 2022.

Last December, the Saudi Cabinet approved the state’s general budget for the fiscal year 2023.

The budget covers total spending at SAR 1.114 trillion ($297 billion) and expects revenues estimated at SAR 1.130 trillion ($301 billion), producing a surplus of 16 billion riyals ($4.2 billion).

According to a report by the GASTAT, oil activities in the third quarter increased 14.2 percent year-on-year, and 4.5 percent quarter-on-quarter.

The report further pointed out that non-oil activities in the Kingdom also grew 6 % year-on-year.

Government activities also rose by 2.5 % in the third quarter compared to the same period a year ago.

GASTAT’s report further noted that crude petroleum and natural gas grew by 14.8 % year-on-year, thus contributing 35.2 % to the national GDP.

“The non-oil economic activities outside the government contributed with a share of 50.7 % to GDP, with the manufacturing (excluding petroleum refining) with a share of 7.8 % being the most important sub-category within the non-oil economy,” the report said.

According to GASTAT, Saudi GDP at current prices amounted to SAR 1.036 trillion in the third quarter of 2022.

By generating 35.2% of Saudi GDP, crude oil and natural gas activities achieved the highest contribution among all other economic activities. This was followed by government services at 14.1%.