The International Monetary Fund has lowered its growth forecast for the Saudi economy by about one percentage point to 1.7% for this year, marking the “largest reduction” among major economies.
Oil
The IMF’s “World Economic Outlook” report attributed the adjustment to oil production cuts.
So What
Along with other OPEC+ members, the Kingdom began reducing its oil production last year to support prices.
The move has had no “significant long-term effect” on Brent crude prices, which have averaged around USD 85 per barrel this year.
This price is below the USD 96 per barrel that the world’s largest crude oil exporter needs to balance its budget, according to IMF.
Now What
IMF expects GDP to grow by 4.7% next year, a 1.3% decrease from its April forecast.
