IMF cuts Saudi Arabia’s growth forecast for 2023

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The International Monetary Fund further lowered its GDP growth forecast for Saudi Arabia for 2023 to 0.8 per cent and estimated growth of 4 per cent next year in its latest World Economic Outlook Report released on Tuesday.

Growth for the Middle East and Central Asia region is forecast at 3.4 per cent in 2024, recovering from an estimated 2 per cent growth this year.

The forecasts were made before the crisis broke out between Israel and the Palestinian Islamist group Hamas on October 7.

IMF forecast for China, EU

The IMF also cut its growth forecasts for China and the Euro area, and said overall global growth remained low and uneven despite what it called the “remarkable strength” of the US economy.

It has gradually lowered its overall growth forecasts for Saudi Arabia, the world’s biggest oil exporter, over the course of this year on the back of lower prices and cuts to crude production.

In July, it had forecast GDP growth of 1.9 per cent for the kingdom, lower than its projection of 3.1 per cent in its May report.

The IMF will release its full regional outlook for the Middle East and Central Asia later this week.

Also read: Saudi Arabia forecasts slower growth, budget deficit for 2023