The IMF revised up its estimate of Saudi Arabia’s economic growth to 6% in 2025 from 5.5% earlier in the year 2024. The IMF also stated in its most recent survey that the Kingdom’s output will increase by 2.6% in 2024, which is 0.1 percent less than anticipated. The officials of the banking organization also stated that estimates for the Middle East and Central Asia region’s combined economic growth in 2024 and 2025 are 2.8 percent and 4.2 percent, respectively.

The World Bank also increased its forecast for the Kingdom’s GDP growth in April, bringing it from 4.2 percent to 5.9 percent in 2025. The IMF projects that the rate of growth in the world economy, which is anticipated to reach 3.2 percent in 2023, will remain constant in 2024 and 2025. The survey also noted that after a 6.8% average in 2023, worldwide headline inflation is predicted to decline to 5.9 percent this year.

“Bringing inflation back to target should remain the priority. While inflation trends are encouraging, we are not there yet. Somewhat worryingly, progress toward inflation targets has somewhat stalled since the beginning of the year. This could be a temporary setback, but there are reasons to remain vigilant,” said IMF Economic Counsellor Pierre-Olivier Gourinchas.

Although the world economy rebounded in 2023, the benefits were distributed differently, with low-income nations still feeling the pandemic’s after-effects. “We now estimate that there will be more scarring for low-income developing countries, many of which are still struggling to turn the page from the pandemic and cost-of-living crises,” said Gourinchas. The IMF also urged nations to restore their fiscal barriers in order to safeguard their levels of sovereign debt and halt the downturn in their medium-term growth prospects.

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