In its October World Economic Outlook, the International Monetary Fund maintained its forecast for the growth of the Saudi economy by 7.6% this year, making it the highest growth among the Group of Twenty countries, ahead of India, which is expected to grow by 6.8%.
Regarding the global economy, the Fund indicated that global economic activity is witnessing a broad slowdown that exceeded expectations, with inflation rates exceeding the levels recorded during several previous decades. The outlook is overburdened by the cost-of-living crisis, tightening financial conditions in most regions, the Russian invasion of Ukraine, and the continuing COVID-19 pandemic.
Forecasts indicate a slowdown in global growth from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023, which represents the weakest growth pattern ever since 2001, except for the critical stage of the global financial crisis. COVID-19 pandemic.
According to forecasts, global inflation will rise from 4.7 percent in 2021 to 8.8 percent in 2022, to decline later to 6.5 percent in 2023 and 4.1 percent in 2024.
Monetary policy should continue restoring price stability while directing public fiscal policy towards relieving pressures caused by the cost of living, provided that its stance remains sufficiently tight in line with monetary policy, according to the Fund.
The Fund added that structural reforms can also support the fight against inflation by improving productivity and reducing supply shortages. At the same time, multilateral cooperation is necessary to accelerate the transition to green energy and prevent fragmentation.