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The International Monetary Fund (IMF) revised up its economic forecast for Saudi Arabia to 2.1 percent for 2020, it said in its latest “World Economic Outlook” report.
However, it lowered its growth forecast to 1.8 percent for 2019, down from its October prediction of 2.4 percent.
The IMF revised its 2019 global growth forecast to 3.5 percent, 0.2 percentage points lower than its previous estimate. Growth for 2020 is expected at 3.6 percent, 0.1 percentage point lower than its earlier estimate, the report said.
The lower growth forecast is driven by trade tensions between the US and China, falling international trade and investment, and weakening business confidence.
Meanwhile, growth in the Middle East, North Africa, Afghanistan and Pakistan region is expected at 2.4 percent this year before recovering to nearly 3 percent next year.
A number of factors weigh on the region’s outlook such as weak oil output grow, tightening financial conditions in Pakistan, US sanctions against Iran, and growing geopolitical tensions.
The IMF forecasts oil prices to be below $60 per barrel on average in 2019 and 2020, down from $69 and $66 prediction in October 2018.
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