RIYADH: The International Monetary Fund has raised its expectations for Saudi Arabia’s economic growth this year by 0.5 percent to 3.1 percent, compared to 2.6 percent in January.  

The fund downgraded its projection for the Kingdom by about 0.3 percent to 3.1 percent in 2024, down from 3.4 percent in January.  

In October, the IMF stated that Saudi Arabia would remain the fastest-expanding economy among the Group of 20 countries, despite the turmoil caused by rising inflation and soaring interest rates.  

When the US-based financial agency posted its projections for 2023, it maintained its projection for the Kingdom’s economic growth this year at 3.7 percent.  

On a global front, the fund expects economic growth to fall to 2.8 percent in 2023, down from 3.4 percent in 2022, due to the Federal Reserve’s tightening monetary policy, as many countries worldwide are following its impact.  

The IMF also predicted that global inflation would fall from 8.7 percent in 2022 to 7 percent this year, which is driven by a fall in commodity prices.  

A top official with the fund stated that the US, China, and other major economies must do more to address the growing global debt levels, which are on track to reach record levels within the next five years and limit nations’ ability to deal with future crises.  

The level of debt as a percentage of gross domestic product was predicted to increase by 99.6 percent by 2028, matching the levels recorded in 2020 when governments recorded the biggest increase in total debt since World War II to support their economies in the face of declining production as a result of plant closures brought on by the COVID-19 pandemic.  

The IMF cautioned that any sudden downturn would be felt most sharply in emerging market countries, which deal with a “multitude of risks” such as high borrowing rates, rising inflation and unpredictable commodities markets.