(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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