Posted on 07/17/2024 3:42:30 AM PDT by SunkenCiv
The International Monetary Fund (IMF) has downgraded its growth forecast for the Saudi economy due to ongoing oil production cuts by OPEC+. The IMF now sees 2024 growth clocking in at just 1.7%, nearly a percentage point lower than its earlier projection of 2.6%. The effects of the cuts are expected to spill over into the coming year, with the IMF projecting GDP growth of 4.7% in 2025, a downward revision of 1.3 percentage points from April...
Last year, the Kingdom's private-sector investments expanded by a brisk 57 percent, reaching a record high of 959 billion Saudi Riyals (254 billion dollars), while arts & entertainment and real service exports grew in triple-digits to the tune of 106 percent and 319 percent, respectively, reflecting the Kingdom's transformation into a global destination for tourism and entertainment. Meanwhile, the food sector recorded 77 percent growth; transport and storage services grew 29 percent, health and education recorded growth of 10.8 percent; trade, restaurants and hotels at 7 percent, while transport and communications increased 3.7 percent.
Back in April, the IMF predicted that Middle East economies would grow at a slower pace than earlier projections due to the war in Gaza, attacks on Red Sea shipping and lower oil output add to existing challenges of high debt and borrowing costs. The IMF now expects the Middle East and North Africa (MENA) economy to expand by 2.7 percent from 3.4 percent in its October regional outlook. However, that would mark 1.9 percent growth from 2023.
(Excerpt) Read more at oilprice.com ...
The downward revision is "entirely due to the impact of the production cuts," Petya Koeva Brooks, deputy director at the IMF, said to reporters after it published its latest World Economic Outlook on Tuesday.
The Saudi government, along with other members of the OPEC+ cartel, reduced crude output in 2023 to prop up oil prices. Those curbs have been prolonged well into next year.
While Brent crude is up around 9% this year to just under $84 a barrel, it's below what Riyadh needs to balance its budget. The IMF calculates the government needs a price of around $96 for that.Saudi Arabia Gets Largest IMF Growth Cut Among Big Economies | Abeer Abu Omar | July 16, 2024 | Yahoo Finance
Won’t be any better for the Saudis this time next year when we are again weaned from that oil teat.
Not their first rodeo. That was the reason for the production cut. Higher fuel price is the main reason for our inflation, of course with the never-ending assistance of the Biden junta and the rest of the Corrupticrats.
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