RIYADH: The World Financial institution has raised its expectations for Saudi Arabia’s financial progress to five.9 p.c in 2025 from 4.2 p.c predicted earlier in January.
In its newest report the financial institution, nonetheless, revised its 2024 forecast for the Kingdom’s gross home product progress downward to 2.5 p.c from an earlier forecast of 4.1 p.c.
Concurrently, the general GDP progress forecast for Gulf Cooperation Council international locations in 2024 has been diminished to 2.8 p.c, down from 3.6 p.c, whereas the 2025 forecast has been revised to 4.7 p.c from 3.8 p.c.
The report additionally adjusted the UAE’s GDP progress forecast to three.9 p.c for 2024, up from the beforehand projected 3.7 p.c, with an additional rise to 4.1 p.c in 2025, from 3.8 p.c.
Kuwait’s financial system is predicted to increase by 2.8 p.c in 2024 and improve additional to three.1 p.c in 2025.
Equally, Bahrain’s financial system is more likely to develop by 3.5 p.c in 2024 and three.3 p.c in 2025, marking a rise from January’s projections.
In the meantime, Qatar’s financial system noticed a downward revision for its 2024 forecast from 2.5 p.c to 2.1 p.c however an upward revision for 2025 from 3.1 p.c to three.2 p.c.
Oman’s financial system projections for 2024 and 2025 noticed a marginal improve of 0.1 p.c for the reason that January forecast.
This adjustment displays the broader financial developments the place the surge in oil costs following Russia’s invasion of Ukraine in 2022 bolstered oil-exporting economies within the Center East and North Africa.
In distinction, financial progress in non-oil-exporting nations — together with MENA oil importers like Djibouti, Jordan, Morocco, Tunisia, and the West Financial institution and Gaza — has slowed.
By 2024, the expansion disparity between GCC oil exporters and growing oil importers is predicted to slim to simply 0.9 proportion factors, marking a major shift from 2022 when GCC international locations grew 5.6 proportion factors quicker, the report said.
“Growing oil exporters will develop 2.8 p.c in 2024, down from 3.1 p.c in 2023 whereas progress in growing oil importers is forecasted to lower to 2.5 p.c in 2024, down from 3.1 p.c in 2023,” the report said.
General, the MENA area is predicted to attain a progress charge of two.7 p.c in 2024, which aligns with pre-COVID ranges however nonetheless trails the worldwide common.
Whereas different rising markets and growing economies are additionally projected to stay beneath pre-pandemic progress charges, they’re anticipated to surpass the MENA area by 1.2 proportion factors in 2024.
