Saudi Arabia’s economy will grow faster than the US – RT Business News

Saudi Arabia’s economy will grow faster than the US

The kingdom is likely to be one of the world’s fastest-growing economies this year, the IMF says.

High oil prices will likely propel Saudi Arabia’s economic growth to overtake that of the United States this year, according to the International Monetary Fund (IMF).

In a report published on Wednesday, the IMF predicted that the kingdom’s GDP will grow 7.6% in 2022, the fastest rate of expansion in nearly a decade. Meanwhile, the US is projected to experience high inflation through 2023, with real domestic GDP growth forecast at 2.3%, less than half last year’s rate of 5.7%.

Saudi GDP growth follows the economic hit from the Covid pandemic in 2020, when its economy shrank 3.4%, compared to 2.3% in the US.

“Saudi Arabia is likely to be one of the world’s fastest-growing economies this year, as business-friendly reforms and a sharp rise in oil prices and the recovery of energy production from a recession induced by a pandemic.” the report said.

According to the IMF, the economic outlook will depend on whether the kingdom overspends its additional oil revenues.

The fund also noted that the US economy will face a number of headwinds, with inflation expected to average 6.6% this year, down from the current rate of 8.5%. Meanwhile, Saudi Arabia is expected to maintain average inflation of 2.8% for the year.

Melissa Galbraith
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