The International Monetary Fund on Tuesday revised downwards Saudi Arabia’s economic growth by nearly one percentage point, mainly due to oil production cuts.
The revision was the biggest among major economies and dragged down the rest of the Middle East and North Africa region, which is projected to grow 2.2% this year, a downward revision of half a percentage point from three months ago, IMF projections in its World Economic Outlook showed.
Saudi Arabia is in the midst of a massive economic overhaul known as Vision 2030 aimed at ending its reliance on oil. Its sovereign wealth fund, the Public Investment Fund (PIF), is spearheading the effort that has seen billions spent on everything from electric vehicles to sports and futuristic cities in the desert.
Reuters reported in May the PIF is weighing a reorganisation that includes reprioritising projects and reviewing some expenses.
Saudi gross domestic product growth is projected at 1.7% this year, down 0.9 percentage points from the IMF’s forecast in April. GDP is seen growing 4.7% in 2025, a downward revision of 1.3 percentage points from April, the IMF said.
Saudi Arabia, de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), has led the group and allies including Russia, together known as OPEC+, in curbing oil output to support the oil market.
OPEC+ members are currently cutting output by a total of 5.86 million barrels per day (bpd), or about 5.7% of global demand.
Last month, the group agreed to begin phasing out 2.2 million bpd of cuts over a year starting from October.