Press Dossier    By Date   31/01/2023 IMF lowers Saudi Arabia’s economic growth to 2.6% for 2023

Arab News, Tuesday, Jan 31, 2023 | Rajab 8, 1444

IMF lowers Saudi Arabia’s economic growth to 2.6% for 2023

Saudi Arabia: The International Monetary Fund has lowered Saudi Arabia’s economic growth forecast to 2.6 percent for 2023, 1.1 percentage points lower than its October estimate of 3.7 percent, its latest report showed. 

This is in line with its projection for the Middle East region which is projected to decline from 5.3 percent in 2022 to 3.2 percent in 2023, primarily attributed to Saudi Arabia’s growth slowdown, according to IMF’s World Economic Outlook report.

In 2022, Saudi Arabia witnessed an economic growth of 8.7 percent, the highest in the region. 

IMF, in its report, noted that the economic growth slowdown in Saudi Arabia could be due to the decision made by the Organization of Petroleum Exporting Countries and its allies known as OPEC+ to reduce the oil output. 

Earlier in October 2022, OPEC+ had agreed to cut output by 2 million barrels per day, which equals to about 2 percent of world demand, from November 2022 until the end of 2023.

The IMF report, however, noted that non-oil growth in Saudi Arabia and the rest of the region will remain robust in 2023. 

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