RIYADH: Affirming Saudi Arabia’s continuous growth, the International Monetary Fund revealed that the Kingdom’s gross domestic product is expected to rise by 4 percent in 2024.
In its latest report, the IMF reduced its forecast for the growth of the Saudi economy in 2023 to 0.8 percent compared to previous estimates.
These fiscal projections are established primarily on its understanding of government policies outlined in the 2022 budget.
Revenues are based on the World Economic Outlook baseline oil price assumptions and the IMF staff’s understanding of current oil policy under the Organization of the Petroleum Exporting Countries and its allies, known as the OPEC+, agreement.
The organization noted: “The global economy is limping along, not sprinting. The world economic growth will slow from 3.5 percent in 2022 to 3 percent this year and 2.9 percent next year, a 0.1 percentage point downgrade for 2024 from July.”
The report indicated a decrease in consumer prices, forecasting a decline to 2.2 percent in 2024, down from 2.5 percent in 2023.
As for the current account balance of the Kingdom, the IMF predicts a fall from 5.9 percent of GDP in 2023 to 5.4 percent in 2024, ultimately reaching 0.5 percent in 2028.
In terms of regional trends, the IMF anticipates the Middle East and Central Asia region to experience a growth slowdown from 5.6 percent in 2022 to 2 percent in 2023, followed by a rebound to 3.4 percent in 2024.
In a global context, Saudi Arabia’s expected GDP growth in 2024 stands out as a significant positive indicator, particularly when compared to broader trends.
The IMF forecasts a slowdown in the global economy – from 3.5 percent in 2022 to 3 percent in the current year and 2.9 percent in 2024.
“The slowdown is more pronounced in advanced economies than in their emerging market and developing counterparts," said the report, adding: "Among advanced economies, the US growth outlook has been revised up, with resilient consumption and investment, while euro area activity was revised downward. Many emerging market economies also proved unexpectedly resilient, with the notable exception of China, which faces growing headwinds from its real estate crisis and weakening confidence.”
In a separate report issued in September, the Organization for Economic Co-operation and Development also predicted Saudi Arabia’s GDP to rise by 3.9 percent in 2024.
The OECD further revealed that the Kingdom’s inflation rate to average 2.1 percent in 2024, signaling effective measures to combat price pressures.
It's worth noting that Saudi Arabia has surpassed the $1 trillion GDP mark for the first time, reaching a GDP of SR4.15 trillion ($1.11 trillion), aligning with the Kingdom’s 2025 goals.
