The World Bank has cut its expectations for Saudi economic growth by 1.5 percentage points in its latest Global Economic Prospects report. Growth is now expected to slow from 8.7% last year to 2.2% in 2023 before accelerating to 3.3% in 2024.
The key reason for the downwards revision since January is the softening oil market, with deep Opec+ production cuts since November 2022 (MEES, 9 June) unable to prevent steady price declines. The World Bank says that “In Saudi Arabia, oil production cuts are expected to result in stagnant industrial output and exports. Growth is forecast to decelerate from 8.7% in 2022 to 2.2% in 2023, with the oil sector experiencing a contraction this year.” (CONTINUED - 285 WORDS)