The International Monetary Fund (IMF) has forecasted a 7.6% growth in the Saudi economy this year in its annual report (World Economic Outlook, 2022), the highest growth rate among world economies.
Despite the global economic challenges, the IMF’s estimates for Saudi Arabia contradict the bleak and uncertain outlook caused by several major factors, including the Russia-Ukraine crisis, European monetary policy restrictions, and the widespread chaos caused by Covid-19. It raised its expectations for the growth of the Kingdom’s economy in 2023 too.
The announcement comes less than a month after an IMF delegation concluded Article IV consultations with the Saudi government for 2022.
The IMF praised the Kingdom’s economy and financial position
The IMF praised the Kingdom’s economy and financial position in its preliminary statement last June, reiterating the Saudi economy’s positive economic horizons in the short and medium term, with the continued recovery of economic growth rates, containment of inflation, and a growing external economic position.
The IMF forecasted 4.2% non-oil growth in the Kingdom
The IMF forecasted 4.2% non-oil growth in the Kingdom, a 17.4% increase in the current account surplus, and overall inflation of 2.8% on average, noting that economic activity in Saudi Arabia is seeing a strong improvement supported by high oil prices and the reforms carried out by the government’s implementation of Vision 2023.