A Monetary Fund Official in Al-Arabiya: 3 Factors That Boost Economic Growth in Saudi Arabia and the Region

Despite the decline in estimates for the major economies, the International Monetary Fund kept the Saudi economy’s growth forecast at 2.8% in 2023.

IMF lowered eurozone growth forecast from 0.4% to 3.9% questyear and lowered China’s economic growth forecast from 0.8% to 4.8% in 2022 due to the housing crisis and pandemic.

The Fund also lowered its forecast for US economic growth from 1.2% to 4% in 2022, with global economic growth expected to slow to 3.8% in 2023.

Dr. Jihad Azour, Director of the Middle East and Central Asia at the International Monetary Fund, in an interview with Al-Arabiya, attributed the reasons for the improvement in expectations for questyear in the three-factor region, the first of which is the acceleration of vaccine distribution in several countries, such as: Saudi Arabia, United Arab Emirates, Egypt and Morocco, and the second is the high price of oil, which will have the greatest impact in 2022 due to the gradual increase in production capacities.

As for the third supporting factor, according to Azour, comes the return of the economic cycle, especially in large economies such as Saudi Arabia and the Gulf economies, and despite the price increases and the recent wave of pandemic, the pace of the economy remained positive, increasing growth prospects from 4.1% to 4.4% for the year 2022.

The IMF lowered its forecasts for global economic growth questyear, citing the fallout from the Omicron, which triggered a slowdown in the United States and in China.

The IMF expects world GDP growth of 4.4% questyear, half a percentage point in less than the previous estimate, published in October, due to the “disruptions” caused by the latest wave of Covid.

The fund said Omicron “threatens a setback in the path of the initial recovery” while high inflation rates will continue for a longer period than expected.

The Fund expects the rise in inflation to begin to subside as monetary policy tightens and the supply chain crisis gradually eases, explaining that inflation will remain high in the short term, with a media by 3.9% in developed countries.

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