IMF expects growth rates to improve gradually in 2024

Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF)

Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), expected 2024 to witness a gradual improvement in growth rates, starting with the GCC countries, driven by the continued growth of the non-oil sector on a rise in oil production.

He told Argaam on the sidelines of the IMF conference that the economic outlook for the region is based on regional and global transformations, as well as global economic convulsions and high risks.

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The geopolitical tensions contributed to reducing inflation rates in 2023, Azour said, pointing to the need to control inflation rates, which led to a rise in interest rates and had an impact on growth levels in 2023.

Some measures were taken to cut inflation in some other countries, as inflation reached historical levels there, the official said, indicating that there will be less need for stricter financial policies.

This will contribute to improving growth rates in the region, amid bullish outlook for some countries whose conditions have relatively improved, but the outlook is still bearish for other countries that suffer from conflicts and are the most economically vulnerable.

Commenting on the role of the IMF's regional office in Riyadh, Azour said the office will activate the partnership between the IMF and the GCC region, as well as the partnership between the GCC countries.

Through the office, regional meetings will be held, which will facilitate cooperation and linking the office with other IMF offices in the region and the world, the top official said.

He added that this will enhance the role of the office in the region, to provide technical support for other countries in the region.

The IMF expected the Kingdom’s economy to grow by 2.6% in 2024, down 0.1% compared to its previous forecast of 2.7% in January, according to data available on Argaam.

The fund also raised its forecast for Saudi economic growth by approximately 0.5% to 6% for 2025, compared to 5.5% in January 2024.