IMF: Saudi economy is the fastest growing among all world’s economies in 2022

The International Monetary Fund (IMF) announced in its annual report (Global Economic Outlook for the year 2022 AD), its expectations that the economy of the Kingdom of Saudi Arabia will record a growth rate of 7.6% this year; to be the highest growth rate among all economies of the world, which includes (advanced economies, emerging market economies and developing economies).

Despite the main challenges facing the global economy, in light of the decline in activity in Russia and China and the decline in spending levels in the United States of America, the International Monetary Fund’s estimates for the Kingdom contradict the bleak and ambiguous outlook that stems from several main factors; Chief among them is the Russian-Ukrainian crisis, the tightening of monetary policies in Europe, and the general closure measures as a result of the new outbreaks of (Covid 19).

As a result, the IMF lowered its forecast for the performance of the global economy this year and 2023, as its estimates were affected by the slowdown in growth in the three largest economies in the world (the United States, China and the European Union region); However, it kept its forecast for the growth of the Saudi economy during 2022 at 7.6%, compared to its previous expectations last April, and the Fund raised its expectations for the growth of the Saudi economy during the next year 2023 slightly as well.

This announcement comes less than a month after a delegation of International Monetary Fund experts concluded a visit to Article IV consultations with the Kingdom of Saudi Arabia for the year 2022 AD. In the short and medium term, with the continued recovery of economic growth rates, containment of inflation, in addition to the increasing strength of its external economic position.

The International Monetary Fund expected a rise in non-oil growth in the Kingdom to 4.2%, an increase in the current account surplus to 17.4% of GDP, as well as containing overall inflation at 2.8% on average, noting that economic activity in it is witnessing a strong improvement supported by high oil prices and reforms. The government’s implementation in the framework of Vision 2030, with limited impact of tightening global conditions thanks to the strong levels of capitalization enjoyed by the banking sector.

The Fund experts stressed that the Kingdom’s continued implementation of structural reforms will help ensure a strong, comprehensive and environmentally friendly recovery, noting that the Kingdom is recovering strongly in the wake of the recession caused by the pandemic. It helped the kingdom recover.