IMF raises economic growth forecast for Saudi Arabia, other Gulf countries

SourceSaudi Gazette
CountrySaudi Arabia

JEDDAH — Saudi Arabia’s economy, the largest in the Middle East, is expected to grow 2.9 percent this year, up from the 2.6 percent forecast in January, the IMF said in its latest World Economic Outlook, released this week.In its monthly report, the IMF said it expects the Saudi economy to recover up to 0.3 percent from estimates predicted in January.In February, it expected Saudi Arabia’s real GDP to grow 2.6 percent this year. It confirmed its expectations for its economy to grow 4 percent in 2022.The forecast for the GDP growth comes after the kingdom’s economy contracted 4.1 percent last year due to the twin shock of the COVID-19 pandemic and lower oil prices.Apart from Saudi Arabia, the global financial institution expects most Gulf economies to recover this year at a faster pace than previously estimated.The United Arab Emirates, the Gulf’s second-largest economy, will see a growth of 3.1 percent this year, rebounding from a 5.9 percent contraction in 2020, the IMF said. In October last year, it had forecast a more...