High oil prices will drive Saudi Arabia's economic growth to outpace the US this year, IMF says

High oil prices will drive Saudi Arabia’s economic growth to outpace the US this year, IMF says

  • High oil prices will likely cause Saudi Arabia’s economic growth to outpace that of the US this year, the IMF said.
  • Estimates show the kingdom’s real GDP will rise by 7.6% this year, compared to estimates of 2.3% for the US.

High oil prices will likely cause Saudi Arabia’s economic growth to outpace that of the US this year, according to the International Monetary Fund.

Saudi Arabia’s GDP is expected by the IMF to increase by 7.6 percent this year – the fastest rate of expansion in nearly a decade. Meanwhile, the US is likely to grapple with high inflation until 2023, with estimate real domestic GDP growth at 2.3%, less than half of last year’s growth of 5.7%.

The GDP growth spurt for Saudi Arabia comes after the oil-rich nation took bigger economic hit from the pandemic in 2020, when its GDP shrank by 3.4% compared to negative 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 IMF said in a report on Wednesday.

And the kingdom looks like it wll be able to maintain its pace of growth for awhile; Saudi Arabian oil prices are set to grow at their fastest rate in over 10 years. That comes at the same time that big oil customers like India have ramped up purchases of Saudi crude significantly as the kingdom competes with Russia as a supplier.

Although the economic outlook will depend on whether the kingdom overspends its extra oil revenue, the IMF said, the estimates are in contrast to the situation for the US economy, which is dealing with a number of headwinds to growth.

US inflation is expected to average 6.6% in 2022 according to the IMF, down from the current rate 8.5%, and recession fears are still mounting. Saudi Arabia, by contrast, is expected to maintain 2.8% average inflation through the year.

While US inflation has cooled slightly from 41-year-highs, leading some analysts to predict a record stock market rally ahead, others think high prices will be sticky and could possibly send the economy into a stagflationary crisis. That would place further pressure on the Federal Reserve as it tries to balance its inflation fight with the desire to maintain growth.

NEWS RELATED

Arábia Saudita x Estados Unidos: onde assistir ao vivo e online, horário, escalação e mais do amistoso internacional

united states japan Arábia Saudita e EUA se enfrentam nesta terça-feira (27), às 15h (de Brasília), pelo amistoso internacional. A partida não terá transmissão ao vivo da TV e da internet. Depois da derrota para o Japão por 2 a 0 na última sexta-feira (23), os Estados Unidos busca ...

View more: Arábia Saudita x Estados Unidos: onde assistir ao vivo e online, horário, escalação e mais do amistoso internacional

'If Shehbaz Sharif has 'any shame' left in him...': Imran Khan demands Pak PM's resignation over PMO audio leaks

‘If Shehbaz Sharif has ‘any shame’ left in him…’: Imran Khan demands Pak PM’s resignation over PMO audio leaks “PM Shehbaz Sharif should resign after the audio leaks involving him, some Cabinet members and government officials have surfaced,” Khan, Pakistan Tehreek-e-Insaf party chairman, said. “In the audio leaks, Shehbaz ...

View more: 'If Shehbaz Sharif has 'any shame' left in him...': Imran Khan demands Pak PM's resignation over PMO audio leaks

Claudia Sheinbaum agradece a Grupo Firme por “donar” concierto en el Zócalo

Foto: especial Tras el concierto brindado por Grupo Firme este domingo 25 de septiembre en el Zócalo capitalino, donde autoridades capitalinas señalaron que hubo una asistencia de 280 mil espectadores, la jefa de Gobierno, Claudia Sheinbaum, agredeció a la banda y destacó el comportamiento de los asistentes. A través ...

View more: Claudia Sheinbaum agradece a Grupo Firme por “donar” concierto en el Zócalo

La Reina Juana I llega a la audiencia de Pedro de Heredia

CLIP 1 LA REINA DE INDIAS-min.jpg Justo antes de iniciar su audiencia, Pedro de Heredia se reencuentra con su familia y se muestra dichoso de que sus seres queridos estén a salvo; sin embargo, el emotivo momento se ve opacado por la inesperada aparición de la Reina Juana I, ...

View more: La Reina Juana I llega a la audiencia de Pedro de Heredia

Audi R8 vs. Acura NSX: Which Used Supercar Is a Better Buy In 2022?

Comparing the Audi R8 to the Acura NSX is like comparing an old-school barber to a modern one. They both achieve the same goal, but one uses a straight razor while the other uses an electric one. It’s the same thing with these two supercars. The second-generation Acura NSX relies ...

View more: Audi R8 vs. Acura NSX: Which Used Supercar Is a Better Buy In 2022?

K-pop grows its Middle East presence with festivals and Blackpink 2023 tour dates in UAE and Saudi Arabia

K-pop music labels and Middle Eastern countries may sound like unlikely partners, but recently there’s been a full-blown pivot of K-pop to the region. Over the past few decades, South Korean entertainment companies and artists have looked beyond the country’s borders for new audiences and markets. In its earliest ...

View more: K-pop grows its Middle East presence with festivals and Blackpink 2023 tour dates in UAE and Saudi Arabia

Nokia 5710 XpressAudio Price in Malaysia & Specs

The Nokia 5710 XpressAudio is powered by a Unisoc T107 (22 nm) CPU processor with 128MB 48MB RAM. The device also has a 2.4-inch TFT LCD (480 x 640 pixels, 333 ppi) display. It supports Bluetooth. It packs in a Li-Ion 1450 mAh, removable battery. Nokia 5710 XpressAudio Specification ...

View more: Nokia 5710 XpressAudio Price in Malaysia & Specs

The Block's Sarah-Jane is 'caught using her Channel Nine credit card to buy cigarettes' - after demanding a financial audit on Omar and Oz house

The Block contestant Sarah-Jane has allegedly been caught in her own ‘dodgy dealing’ scandal after claims she purchased cigarettes with her Channel Nine credit card. Contestants are given the card to buy building supplies, furniture and other items relating to their houses, but the social worker, 30, reportedly abused the ...

View more: The Block's Sarah-Jane is 'caught using her Channel Nine credit card to buy cigarettes' - after demanding a financial audit on Omar and Oz house

USA vs. Saudi Arabia, 2022 friendly: What to watch for

Eduardo Berizzo esquiva el bulto ante la polémica ausencia de Claudio Bravo: “Prefiero hablar de los jugadores que están”

Presidente da Lazio, Claudio Lotito é eleito senador na Itália

La auditoría externa tiene un avance del 73% y se termina en noviembre

Video: The Block teams call for a financial audit of Omar and Oz's ENTIRE house as the 'dodgy dealers' are accused of breaking '50 per cent discount rule'

The Block teams call for a financial audit of Omar and Oz's ENTIRE house as the 'dodgy dealers' are accused of breaking '50 per cent discount rule'

Klaudia Andrzejewska będzie reprezentować Polskę na konkursie miss. Jej długie nogi robią olbrzymie wrażenie!

La JEP revoca expulsión del exsenador Julio Manzur y lo cita a audiencia pública

Grávida aos 55, Claudia Raia relembra choque ao descobrir gestação: 'Fiz um monte de estripulia'

What are the US audit regulator’s inspectors doing in Hong Kong?

Juan Daniel Oviedo y su plan para llegar a la Alcaldía de Bogotá; felicitó a Claudia López

Claudio Pizarro eligió a los entrenadores que más lo marcaron en su carrera: ¿Pep Guardiola o José Mourinho?

OTHER NEWS

Breaking thailand news, thai news, thailand news Verified News Story Network