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IMF Forecasts 4.4% Growth for Saudi Economy in Medium Term
Riyadh - The International Monetary Fund (IMF) projected on Wednesday that the Saudi economy is set to grow by 4.4 percent in the medium term, following the impact of OPEC+ alliance cuts during 2023 and 2024.
This announcement was made after the IMF’s 2024 Article IV consultations with the Kingdom of Saudi Arabia.
The IMF noted, “Saudi Arabia’s economy will see a growth of 4.7 percent in 2025, as the OPEC+ alliance gradually lifts oil production cuts.”
Leading the 23-member alliance, Saudi Arabia has implemented mandatory and voluntary production cuts, which total nearly 1 million barrels of oil per day.
In 2022, the Saudi economy experienced significant growth of 8.7 percent, bolstered by rising global oil prices. However, in 2023, the economy contracted by 0.8 percent due to declining oil prices and the Kingdom’s oil production cuts.
The fund highlighted, “Saudi Arabia has made significant strides in its unprecedented economic transformation. The economy has shown resilience against major geopolitical events in the region.”
The IMF praised Saudi banks and non-financial companies for their ability to endure adverse scenarios, while recommending further efforts to enhance non-oil revenue streams.
Additionally, the IMF recommended ongoing improvements in Saudi Arabia’s public finance situation, suggesting the gradual removal of remaining fuel subsidies alongside the implementation of support programs for eligible groups.
Article IV of the IMF’s Articles of Agreement outlines the framework for bilateral discussions with member countries, typically held on an annual basis. During these consultations, a team of IMF experts gathers essential economic and financial data and engages with national officials on current economic trends and policies.
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