The International Monetary Fund (IMF) further lowered its GDP (gross domestic product) growth forecast for Saudi Arabia to 1.5 per cent in 2024.
The Fund, in its latest World Economic Outlook report, however, estimated the Kingdom’s GDP growth to accelerate to 4.6 per cent next year.
The latest downward revision in Saudi Arabia’s 2024 economic growth follows the IMF lowering the country’s GDP projections by nearly a percentage point to 1.7 per cent in July from its April estimates, Reuters reported.
Growth for the Middle East and Central Asia region is forecast at 2.4 per cent in 2024, and projected to increase to 3.9 per cent next year as temporary disruptions to oil production and shipping are expected to fade away, the IMF said.
“Compared with that in April, the projection has been revised downward by 0.4 percentage point for 2024, mainly the result of the extension of oil production cuts in Saudi Arabia and ongoing conflict in Sudan taking a large toll,” said the IMF report released on Tuesday.
Saudi Arabia is the world’s top oil exporter and its public finances remain largely reliant on revenue from hydrocarbons although it has accelerated efforts to bolster non-oil growth and develop new income streams.
The IMF projects oil prices will rise by 0.9 per cent in 2024 to about $81 a barrel.
It has previously said Saudi Arabia needs prices at close to $100 per barrel to balance its budget.
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