Saudi Arabia’s Growth Forecast for 2023 Reduced to 0.8% by IMF
IMF Lowers Growth Forecast for Saudi Arabia
The International Monetary Fund (IMF) has revised its GDP growth forecast for Saudi Arabia for 2023, reducing it to 0.8%. This adjustment was made in the latest edition of the World Economic Outlook Report, released on Tuesday. The report also estimates a growth rate of 4% for the country in the upcoming year.
Positive Outlook for the Middle East and Central Asia Region
The IMF predicts a growth rate of 3.4% for the Middle East and Central Asia region in 2024, recovering from an estimated 2% growth this year. However, it’s important to note that these forecasts were made prior to the recent conflict between Israel and the Palestinian Islamist group Hamas.
China and Euro Area Growth Forecasts Also Cut
In addition to Saudi Arabia, the IMF has reduced its growth forecasts for China and the euro area. The report highlights that global growth remains low and uneven, despite the “remarkable strength” of the U.S. economy.
Factors Contributing to Saudi Arabia’s Lower Growth Forecasts
Throughout this year, the IMF has gradually adjusted its growth forecasts for Saudi Arabia, the world’s largest oil exporter. This downward revision is mainly attributed to lower oil prices and production cuts.
IMF’s Previous Forecasts for Saudi Arabia
In its May report, the IMF projected a GDP growth rate of 3.1% for Saudi Arabia. However, this figure was lowered to 1.9% in July. The continuous adjustment of growth forecasts reflects the ongoing challenges faced by the country.
Upcoming Regional Outlook from the IMF
The IMF is set to release its full regional outlook for the Middle East and Central Asia later this week. This comprehensive report will provide further insights into the economic landscape of the region.
