IMF Slashes Saudi Arabia’s 2023 Growth Forecast to 0.8%

In its most recent World Economic Outlook Report released on Tuesday, the International Monetary Fund has revised its GDP growth forecast for Saudi Arabia in 2023 down to 0.8%. However, the IMF remains optimistic for next year, predicting a growth of 4%.

Good news is on the horizon for the Middle East and Central Asia region, as growth is expected to reach 3.4% in 2024, a significant recovery from the estimated 2% growth seen this year. These optimistic forecasts were made prior to the recent conflict that erupted between Israel and the Palestinian Islamist group Hamas on Oct. 7.

The IMF reduced its growth predictions for China and the euro area, highlighting that global growth continues to be sluggish and uneven, despite the U.S. economy’s outstanding performance, which the IMF referred to as “remarkably strong.”

It has gradually lowered its overall growth forecasts for Saudi Arabia, the world’s biggest oil exporter, over the course of this year on the back of lower prices and cuts to crude production.

In July, it had forecast GDP growth of 1.9% for the kingdom, lower than its projection of 3.1% in its May report.

The IMF will release its full regional outlook for the Middle East and Central Asia later this week.

(Reuters)