IMF lowers Saudi Arabia's growth forecast to 0.8% for 2023

DUBAI - The International Monetary Fund further lowered its GDP growth forecast for Saudi Arabia for 2023 to 0.8% and estimated growth of 4% next year in its latest World Economic Outlook Report released on Tuesday.

Growth for the Middle East and Central Asia region is forecast at 3.4% in 2024, recovering from an estimated 2% growth this year. The forecasts were made before the conflict broke out between Israel and the Palestinian Islamist group Hamas on October 7.

The IMF also cut its growth forecasts for China and the euro area, and said overall global growth remained low and uneven despite what it called the "remarkable strength" of the US economy.

It has gradually lowered its overall growth forecasts for Saudi Arabia, the world's biggest oil exporter, over the course of this year on the back of lower prices and cuts to crude production.

In July, it had forecast GDP growth of 1.9% for the kingdom, lower than its projection of 3.1% in its May report.

The IMF will release its full regional outlook for the Middle East and Central Asia later this week.