IMF: Saudi Economy Likely to be One of the Fastest Growing in the World in 2022

The International Monetary Fund (IMF) on Wednesday maintained its economic growth forecast for Saudi Arabia at 7.6% this year, bucking the global trend toward recession and likely placing it among the top growing economies in the world in 2022.

The 7.6% forecasted growth of the Saudi economy is largely driven by higher oil prices in recent months as global demand continues to outstrip production following the pandemic-induced downturn. However, the IMF said it expected the kingdom’s non-oil gross domestic product to grow by 4.2% this year. Next year, real GDP was forecast to increase by 3.7% and non-oil GDP to expand by 3.8%, according to a report in Reuters, which cited the IMF data.

The Fund said in a report that Saudi Arabia’s fiscal performance this year would outperform the budget and for the first time since 2013 there would be a fiscal surplus of 5.5% of GDP.

According to Reuters, IMF Mission Chief Amine Mati told reporters Saudi Arabia could increase non-oil revenue by taxing income or property, which did not currently exist, and should be considered by the government.

[Click here to read more from Reuters]

[IMF: Executive Board Concludes 2022 Article IV Consultation with Saudi Arabia]





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