IMF expects Saudi economy to grow by 3.4% in 2024

The International Monetary Fund revealed on Tuesday that it expects the Saudi economy to grow by 3.4% in 2024 while lowering its growth forecast from 1.1 percentage points to 2.6% in 2023.

The IMF latest global economic forecasts indicated that the overall growth of the economies of the Middle East and Central Asia region would slow down this year to 3.2 per cent, which is 0.4 percentage points lower than its estimates in October, attributing this to reasons including the effects of the war in Europe.

Pierre-Olivier Gourinchas as IMF Economic Counsellor and Head of Research Department, said that the region’s review mainly reflects “the reductions of Egypt and Saudi Arabia, due to reasons including the impact of the war in Ukraine and its repercussions on commodity prices.”

He added that for Saudi Arabia, the decline in crude oil production within the framework of the OPEC + agreement also has an impact.

“The situation is very difficult for oil importers in the region, many of whom are heavily indebted, and therefore food prices and energy prices that are still high are a great burden… The cost of living crisis is still present and affecting that region, so there is also a risk of social unrest.”, Deputy Director of the Research Department at the International Monetary Fund Petya Koeva Brooks said.