Tuesday 25 July 2023

#SaudiArabia Veers From Russia With Biggest IMF Downgrade - Bloomberg

Saudi Arabia Veers From Russia With Biggest IMF Downgrade - Bloomberg


OPEC+ allies Saudi Arabia and Russia are at the opposite extremes of the International Monetary Fund’s latest global outlook despite joint efforts to cut crude output.

The kingdom is getting the steepest growth downgrade among major economies from the IMF at a time when the Kremlin’s wartime budget stimulus helps offset its oil curbs. Saudi Arabia, the fastest-growing economy in the Group of 20 last year, is on track to expand just 1.9% in 2023, a downward revision of 1.2 percentage points from the fund’s earlier estimate.

By contrast, the IMF improved its view of Russia by 0.8 percentage point and now expects the economy to add 1.5%, after what it said was a “large fiscal stimulus” in the first half.

For Saudi Arabia, the downgrade “reflects production cuts announced in April and June in line with an agreement through OPEC+,” the IMF said in its World Economic Outlook published Tuesday.

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