The International Monetary Fund (IMF) has reduced its forecast for Saudi Arabia’s economic growth to 1.7% for 2024, down from the 2.6% estimate issued last April.
In its Global Economic Outlook report released on July 16, the IMF cited the extension of oil production cuts as the primary reason for the 0.9% reduction in growth expectations for the current year.
The report also adjusted the growth forecast for 2025, predicting a 4.7% increase in the Saudi economy, down from the previous 6% estimate, marking a 1.3% downgrade.
As a key member of the Organization of the Petroleum Exporting Countries (OPEC), Saudi Arabia has been leading the group in reducing oil output to stabilise the market. However, the Kingdom’s non-oil economy has demonstrated resilience during this time. Valued at SAR 1.7 trillion ($453 billion) the non-oil sector has seen growth driven by exports, investments, and consumer spending.
