World Bank's Economy Forecast On Saudi Arabia, Going To Face An "Abrupt Decrease"

Production cuts and lower prices are going to make Saudi Arabia”s economy go south. As per the World Bank, the economy of the country is going to shrink for about a 0.93 percentage in 2023.  The country”s overall growth in the Middle East and North African region is expected to go low as well.

Saudi Arabia, one of the world”s largest economy and oil exporter has made a cut down on its oil production, as a method to “stabilise” its oil market. The country”s oil price stays below the line of last year”s average, which is $100 per barrel.

Saudi Arabia expects its GDP to go down about 0.03 percentage from last year”s 8.7 percentage. The latest economic update from the World Bank adheres the country”s “abrupt decrease” in economy to “lower oil production levels amidst subdued prices”.

World Bank”s economy forecast on April suggested this decrease. The six member countries of GCC”s  (Gulf Cooperation Council) GDP was 7.3 percentage and is expected to go down one percentage this year.

The Middle East North Africa economy comprises of the well developed GCC countries and country like Jordan, which is a developing oil importer. Country like Iraq, which is a  developing oil exporter is also among the list.

It is expected that the Gulf Cooperation Council will put forward a 0.8 percentage GDP for the year 2023. The number is down from that of last year, which is 4.3 percentage. The World Bank”s vice president for the region of Middle East North Africa, Ferid Belhaji said, “without policy reforms, we could inadvertently worsen the enduring structural challenges faced by the Middle East North Africa region”s labour markets as far as the eyes can see”. He aslso added that the “time for reform is now”.

With inputs from The Economic Times.