Saudi Arabia's economy will grow at a slower pace this year than previously predicted as oil prices drop from recent peaks, according to a Reuters poll which also showed the United Arab Emirates (UAE) expanding at the fastest clip in the region.
After growing 8.7% in 2022, Saudi Arabia's economy - the Gulf Cooperation Council's (GCC) largest - contracted 0.9% last year as crude oil prices dropped from a March 2022 peak of $139 per barrel to average around $82 in 2023.
With oil prices not expected to rise significantly this year economists now predict weaker growth for Saudi Arabia's oil-dependent economy.
The April 3-19 poll forecast the economy would expand 1.9% in 2024, a downgrade from 3.0% in a January poll.
"The slower expansion in the Saudi economy this year will be down to ongoing oil production curbs ... due to be maintained through Q2 at least. When looking at the non-oil sector, we hold a more bullish outlook," said Daniel Richards, MENA economist at Emirates NBD.
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