ABU DHABI: The International Monetary Fund further lowered its GDP growth forecast for Saudi Arabia for 2024 to 1.5% and estimated growth to accelerate to 4.6% next year in its latest World Economic Outlook Report released on Tuesday.

In July, the IMF lowered its GDP projections for Saudi Arabia’s 2024 GDP by nearly a percentage point from its April estimates to 1.7%.

Growth for the Middle East and Central Asia region is forecast at 2.4% in 2024, and projected to increase to 3.9% next year as temporary disruptions to oil production and shipping are expected to fade away, the IMF said.

Oil-rich Saudi projects budget deficit through 2027

“Compared with that in April, the projection has been revised downward by 0.4 percentage point for 2024, mainly the result of the extension of oil production cuts in Saudi Arabia and ongoing conflict in Sudan taking a large toll,” Tuesday’s report said.

The kingdom is the world’s top oil exporter and its public finances remain largely reliant on revenue from hydrocarbons although it has accelerated efforts to bolster non-oil growth and develop new income streams.

The IMF projects oil prices will rise by 0.9% in 2024 to about $81 a barrel. It has previously said Saudi Arabia needs prices at close to $100 per barrel to balance its budget.