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Saudi Arabia's economy is expected to expand faster than US

(MENAFN) According to the International Monetary Fund, Saudi Arabia’s economic growth will likely outpace that of the United States this year due to high oil prices (IMF).

The IMF predicted in a report released on Wednesday that the kingdom’s GDP will grow by 7.6% in 2022, the fastest rate of expansion in nearly a decade. Meanwhile, the United States is expected to experience high inflation until 2023, with real domestic GDP growth of 2.3%, less than half of last year’s rate of 5.7%.

Saudi GDP growth comes on the heels of an economic hit from the COVID pandemic in 2020, when the Saudi economy contracted by 3.4%, compared to 2.3% in the US.

“Saudi Arabia is likely to be one of the world’s fastest-growing economies this year as sweeping pro-business reforms and a sharp rise in oil prices and production power recovery from a pandemic-induced recession,” the report stated.

The economic prognosis will depend on whether the kingdom wastes its additional oil revenue, according to the IMF.

The US economy will face a variety of challenges, according to the fund, with inflation predicted to average 6.6% this year, down from the current rate of 8.5%. Through the course of the year, Saudi Arabia is anticipated to keep its average inflation rate at 2.8%.

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