In its most recent World Economic Outlook Report, which was made public on Tuesday, the International Monetary Fund further reduced its GDP growth prediction for Saudi Arabia for 2024 to 1.5% and predicted growth to pick up speed to 4.6% the following year.
The IMF reduced its 2024 GDP forecasts for Saudi Arabia by about an amount point from its April estimates in July, to 1.7%.
The IMF predicted that growth in the Middle East and Central Asia area would reach 2.4% in 2024 and 3.9% the following year as short-term interruptions to shipping and oil production are anticipated to subside.
According to Tuesday’s study, “the forecast has been revised downward by 0.4 percentage points for 2024 compared with that in April, primarily due to the ongoing conflict in Sudan and the extension of oil production cuts in Saudi Arabia taking a large toll.”
The kingdom is the largest oil exporter in the world, and although it has intensified efforts to support non-oil growth and create new revenue sources, its public finances still heavily rely on hydrocarbon earnings.
As per the IMF projections, oil prices would increase by 0.9% to over $81 per barrel in 2024. It has previously stated that in order to balance its budget, Saudi Arabia needs prices at around $100 per barrel.
