IMF Report: Saudi Arabia Among 10 Economies Whose Global GDP Share Doubled Since 2000

A recent report by the International Monetary Fund (IMF) highlighted the impact of emerging economies within the G20 on the growth of developed countries, underscoring the increased significance of ten emerging economies, including Saudi Arabia. These economies – Argentina, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, and Turkey – have collectively doubled their share of global GDP since 2000.

The report emphasized the growing integration of these economies into the global economic landscape, from China, the world’s second-largest economy, to Argentina, facing challenges related to debt default. They are now pivotal participants in global trade and commodity production cycles, no longer merely recipients of global shocks.

The IMF’s World Economic Outlook report, released ahead of the spring meetings of the World Bank and IMF in Washington, D.C., highlighted the increasing indirect effects of local shocks in G20 emerging markets since 2000. Notably, China’s influence now rivals that of shocks in advanced economies.

China’s economic challenges, including high local government debt and a prolonged real estate market crisis, have contributed to these shifts. Meanwhile, the IMF noted the changing dynamics of spillover effects, particularly as Russia shifts its economic focus towards Asia.

Overall, spillovers have nearly tripled since the early 2000s, largely driven by China, with moderate increases observed in Brazil, India, and Mexico. The interconnectedness of economies underscores both the risks posed by shocks in distant countries and the potential benefits if emerging economies regain strength.