Saudi economy to be fastest-growing economy in 2022, says IMF

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Chain-linking methodology takes into consideration production structure and consumption patterns. (Creative Commons)
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  • The International Monetary Fund in its World Economic Outlook, 2022 says the Saudi economy will register a 7.6 percent growth rate this year
  • Saudi Arabia's expected growth, as per IMF, would be the highest among advanced, emerging market and developing economies

The International Monetary Fund (IMF), in its World Economic Outlook, 2022, said that the Saudi economy will register a 7.6 percent growth rate this year.

This would be the highest growth rate among advanced, emerging market and developing economies.

Despite the decline in economic activity in Russia and China and the drop in the US spending levels, the IMF’s estimates for the Kingdom of Saudi Arabia is promising.

The IMF report contradicts the bleak outlook that stems from several factors including the Russian-Ukrainian crisis, the restrictions of monetary policies in Europe and the general closure measures as a result of the new outbreaks of Covid-19.

The IMF lowered its forecast of the global economy this year and 2023, influenced by the slowdown in growth in the three largest economies in the world (the United States, China and the European Union region).

However, IMF kept its forecast for the growth of the Saudi economy during 2022 at 7.6 percent. The IMF raised its expectations for the growth of the Saudi economy during 2023.

In its statement in June, the IMF praised the strength of the Kingdom’s economy and the strength of its financial position.

The IMF reiterated the positive comments on the Saudi economy in the short and medium term, with the continued recovery of growth rates, containment of inflation and its growing external economic position.

IMF expects a rise in non-oil growth in the Kingdom to 4.2 percent, an increase in the current account surplus to 17.4 percent of GDP, as well as containing overall inflation at 2.8 percent on average.

The IMF said that economic activity in Saudi Arabia is witnessing a strong improvement supported by high oil prices and reforms supported by the government’s implementation of its Vision 2030.

IMF experts stressed that the Kingdom’s continued implementation of structural reforms will help ensure a strong, comprehensive and environmentally friendly recovery.

They said the country is recovering strongly in the wake of the recession caused by the pandemic.

They added that the liquidity, public finances support, the reforms momentum, rise in oil prices and the increase in its production helped Saudi Arabia recover.

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