Saudi Arabia's Economy Expects To Surpass The Global Average: IMF
Saudi Arabia’s economic growth is expected to surpass the global average growth by 2025, as per the latest updates from the International Monetary Fund (IMF)’ World Economic Outlook. The IMF projected the country’s growth rate at 4.7% in the next year, compared to the 3.3% of the global forecast.
The IMF said that the global economy is going through a challenging phase, and predicted that the global output will grow by 3.2% in 2024 and 3.3% in 2025.
Earlier, the IMF anticipated a growth rate of 6 % for Saudi Arabia in 2025, however now adjusted it to a lower rate. It also adjusted its 2024 growth forecast from 2.6% to 1.7%. The reduction in the growth rate prediction for 2024 in Saudi Arabia is said to be mainly because of the extension of oil production cuts, as per the IMF.
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The IMF report said that oil production and regional conflict continue to impact the economic prospects in the Middle East and Central Asia.
Across major economies, the economic forecasts reflected contrasting trends. The US reportedly showed a sharper-than-anticipated slowdown, driven by the easing consumer spending and adverse net trade dynamics. The growth projections for 2024 were revised to 2.6% in April, which is 0.1% lower than anticipated earlier. The projection for 2025 is expected to decline even further to 1.9 percent.
For Europe, the growth rate is expected to reach 0.9 percent in 2024, which will rise to 1.5 percent in 2025. The Europe’s economic recovery is based on robust performances of the service sector and strengthened consumer demand, higher real wages.
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China’s economic growth continues to be resilient at 5% for 2024 driven by the increase in domestic consumption and robust export performance. India’s growth forecast has also been revised upward to 7 percent for 2024 reflecting improved private consumption.
Japan’s revised growth forecast for 2024 is 0.7% from 0.9% in April, influenced by the transient supply disruptions and decrease in private investment.
