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.