The Saudi economy grew 8.7% last year, as high oil prices boosted revenue and led to the kingdom’s first budget surplus in almost 10 years.
The IMF projects that Saudi GDP growth will more than halve, to 3.1%, this year, in line with the forecast for Middle East oil exporters. The forecast, however, is higher than the 2.6% growth rate that the IMF projected in January.
Several OPEC+ member states, led by Saudi Arabia, the world’s top crude exporter, recently announced surprise cuts to oil production from May, initially driving up global prices, although global worries and an uncertain demand outlook are weighing on prices.
Saudi Arabia has embarked on an ambitious economic transformation plan known as Vision 2030, investing billions to diversify into sectors such as tourism, launch massive infrastructure projects, and develop the financial and private sectors.