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]
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