Reuters poll: Saudi economy will grow 1.3% this year and 4.5% in 2025

A Reuters poll showed that the Saudi economy is likely to grow by 1.3% in 2024, and 4.5% in 2025, compared to 1.9% and 4.1% in last April’s poll.

While the survey lowered its expectations for the growth of the Saudi economy this year, it raised them next year. Economists polled by Reuters lowered their growth expectations from three months ago due to the Kingdom’s extension of oil production cuts.

While the survey showed that the Gulf Cooperation Council economies will grow to 1.9% on average in 2024 and 3.7% in 2025, compared to 2.5% and 3.1% in last April’s survey.

The Fund had raised its forecast for Saudi economic growth to 4.7% in 2025, compared to its previous estimate last June of growth of about 4.5%.

The Fund expected the Saudi economy to grow 1.7% this year.

Last June, the International Monetary Fund said that economic activity in Saudi Arabia remains strong despite the slowdown in oil GDP growth, due to the voluntary reduction in oil production, driven by the growth of private consumption and non-oil investment.

Earlier this month, the International Monetary Fund expected the Saudi economy to grow by 1.7% in 2024, and it also expected growth next year at 4.7%.

The IMF also raised its forecast for global economic growth in 2025 to 3.3%, indicating a slowdown in the momentum of global efforts aimed at slowing inflation rates, and it is likely that major central banks will reduce interest rates in the second half of 2024.

The Fund raised its forecast for China’s economic growth in 2024 to 5% from 4.6% in the previous report.