Several OPEC+ member states, led by Saudi Arabia, the
world's top crude exporter, recently announced surprise cuts to
oil production starting in May, driving up global prices and
price expectations.
Azour said the latest projections reflected developments
prior to the most recent cuts announcement.
"These cuts will lower growth for the GCC region, but will
have a positive outcome on fiscal and external positions as
higher oil prices offset the impact of lower growth," he said.
Saudi Arabia recorded GDP growth of 8.7% in 2022, the
highest among G20 countries, as high oil prices boosted
government revenues by 31%, leading to its first fiscal surplus
in almost a decade.
Growth projections for this year are significantly lower; in
January, the IMF revised its forecast downwards on the back of
lower expected output to 2.6%.
Azour said the IMF expected the non-oil sector in Saudi
Arabia to continue to grow, supported by labour market reforms,
job creation, and increased activity from the development of
megaprojects and investments as it moves towards economic
diversification.
(Reporting by Rachna Uppal; Editing by Alison Williams,
Alexander Smith and Mike Harrison)
(Adds IMF comment, details)
By Rachna Uppal
DUBAI, April 13 (Reuters) - GDP growth in the Middle
East and North Africa region will slow to 3.1% in 2023, from
5.3% a year ago, International Monetary Fund (IMF) Middle East
and Central Asia department director Jihad Azour said on
Thursday.
"Growth is projected to slow this year due to tight policies
to restore macroeconomic stability, agreed OPEC+ production
cuts, and the fallout from the recent deterioration in global
financial conditions," Azour told a press briefing.
Growth among MENA oil exporters will slow to 3.1% from 5.7%
last year, with the non-hydrocarbon sector activities to be the
main driver of growth, he said.
Low income countries in the region will lag, with growth
forecast at 1.3% this year as high commodity prices,
macroeconomic instability and country-specific fragilities
weigh.
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