IMF Has Most Favorable Outlook for Saudi Economy in 2021

The International Monetary Fund expects the Saudi economy to grow by 2.8 % in 2021 — higher than forecasts by other global and local institutions. In its latest regional economic outlook, the international organization said that oil exporters such as Saudi Arabia are expected to expand their production after August 2021. In addition, strong vaccination campaigns and higher oil prices are projected to boost the non-oil sector of the Kingdom’s economy, prompting an expansion in economic activity.

The Saudi Ministry of Finance expects the Saudi economy to grow by 2.4 % in 2021, in line with the World Bank's predictions. Capital Economics and OECD also had similar forecasts for 2021. Jadwa, on the other hand, had the lowest expected rise in output, predicting a 1.8 % growth rate only despite raising it from the previous 1.3 % forecast.

As for the 2022 outlook, Capital Economics had the most positive forecast for the Saudi economy, saying it would jump by 7.3 %.  The Ministry of Finance posted its projection for 2022 growth at 4.8 %. The IMF and OECD had the same expectation as well. Moreover, the World Bank prediction was a slightly higher 4.9 %. Jadwa also had a similar forecast for Saudi growth at 5.1 %.