The International Monetary Fund (IMF) has projected Saudi Arabia’s economy to grow at 7.6 percent this year – the highest growth rate among world economies for 2022.
“IMF’s estimates for the Kingdom of Saudi Arabia contradict the bleak and ambiguous outlook that stems from several main factors including the Russian-Ukrainian crisis, the restrictions of monetary policies in Europe, and the general closure measures as a result of the new outbreaks of Covid-19,” IMF said in its World Economic Outlook 2022, reported SPA.
The IMF said the high economic growth rate in Saudi Arabia will come amid challenges facing advanced economies and the global economy, and in light of the decrease in activity in Russia and China and a decline in US spending levels.
The Fund has lowered its forecast for the performance of the global economy this year and 2023, influenced by the slowdown in growth in the three largest economies in the world – the US, China, and the European Union region.
The Fund, however, kept its forecast for the growth of the Saudi economy during 2022 at 7.6 percent, compared to its previous expectations last April.
It also raised its expectations for the growth of the Saudi economy during the next year 2023 slightly as well.
This announcement comes less than a month after an IMF delegation concluded Article IV consultations with the Saudi government for 2022.
In its preliminary statement issued last June, the Fund praised the strength of the Kingdom’s economy and the strength of its financial position, reiterating the positive economic horizons of the country’ economy in the short and medium term, with the continued recovery of economic growth rates, containment of inflation, in addition to its growing external economic position.
The IMF expected a rise in non-oil growth in the Kingdom to 4.2 percent, an increase in the current account surplus to 17.4 percent of GDP, as well as containing overall inflation at 2.8 percent on average.
It noted that economic activity in the Kingdom was witnessing a strong improvement supported by high oil prices and reforms supported by the government’s implementation of its Vision 2030, with a limited impact of tightening global conditions due to the strong levels of capitalisation enjoyed by the banking sector.
IMF experts stressed that the Kingdom’s continued implementation of structural reforms will help ensure a strong, comprehensive, and environmentally friendly recovery.
It also observed that Saudi Arabia was making a strong recovery from the pandemic-induced slowdown, supported by liquidity support, support provided by the public finances, the momentum of reforms, besides the rise in oil prices and the increase in its production.
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