DUBAI: Saudi Arabia said Wednesday it recorded its first annual budget surplus in nearly a decade, beating its own projections in a year of spiking oil prices, local media reported.
The surplus for 2022 amounted to 102 billion Saudi riyals ($27 billion), representing 2.6 percent of GDP, according to preliminary estimates, the Saudi-owned outlet Al Arabiya reported.
That was up from the surplus of 90 billion Saudi riyals that had been projected for 2022 at the end of last year.
The world's biggest crude exporter also preliminarily recorded GDP growth of 8.5 percent for the year, higher than the 7.6 percent predicted by the International Monetary Fund, Al Arabiya said.
The budget approved for 2023 foresees a surplus of 16 billion Saudi riyals ($4 billion) and GDP growth of 3.1 percent, Al Arabiya said.
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The economic data comes as much of the world grapples with widespread energy shocks and deepening worries about recession.
The Gulf kingdom has benefited from spiking oil prices, triggered by Russia's invasion of Ukraine in February, as well as growth in non-oil sectors that officials attribute to the Vision 2030 agenda of economic diversification.
In August, Saudi Arabia said it had recorded a surplus of over $20 billion in the second quarter, as oil revenues surged 90 percent compared to the same period of 2021.
Oil prices have since fallen considerably despite a decision in October by the OPEC+ oil cartel, which Riyadh leads jointly with Moscow, to cut production by two million barrels per day.
On Tuesday, US benchmark West Texas Intermediate finished at $74.25 a barrel, down 3.5 percent, in its lowest closing price of the year, as concerns about sagging Chinese demand persist.
Economic experts say Saudi Arabia needs a crude price of about $80 a barrel to balance its budget.
This year's surplus is the first since the 2014 collapse of oil prices from more than $100 a barrel, which prompted Riyadh to borrow heavily and draw from its financial reserves to plug budgetary shortfalls.
It also imposed austerity measures like cutting fuel and power subsidies and levying a value added tax.