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The International Monetary Fund (IMF) has slightly trimmed its Saudi’s growth forecast to 2.6% this year, down from the 2.7% it penciled back in January, it said in its latest World Economic Outlook (pdf) yesterday,
BACKGROUND- The IMF first lowered its projections for Saudi GDP growth this to 2.7% in January from an earlier forecast of 4.0% in October 2023 on the back of combined effects of lower oil prices and production cuts. The Kingdom’s economy saw a 0.9% contraction last year, down from an 8.7% growth in 2022.
We’ve yet to see officials follow suit: The Finance Ministry is targeting a GDP growth of 4.4% in its budget for this fiscal year, Finance Minister Mohamed Al Jadaan said in December.
LOOKING AHEAD- 2025 is looking to be a good year: The IMF raised its Saudi GDP growth forecasts next year to 6.0%, up from the 5.5% projected in January.
REGIONALLY- The IMF is forecasting 2.8% growth in Middle East and Central Asia, slightly down from the 2.9% forecast in January. It maintained its projections in January for GDP growth in Middle East and Central Asia for next year at 4.2%.
The World Bank slashed earlier this week the Kingdom’s growth forecast to 2.5% in 2024, down from the 4.1% it penciled in January 2024. It sees the non-oil economy growing a strong 4.8% in 2024, up from its 4.3% projection last November.
