IMF raises 2018 Saudi growth forecast to 2.2%

The International Monetary Fund (IMF) on Monday raised its growth forecast for Saudi Arabia for the third time this year, citing higher oil prices.

In its latest "World Economic Report", the IMF said the Saudi economy, which had contracted by 0.9 percent in 2017, is expected to grow by 2.2 percent this year, up 0.3 percentage points from its July projections.

It also raised projections for 2019 growth to 2.4 percent from its earlier estimate of 1.9 percent.

"The growth is being driven by a pickup in non-oil economic activity and a projected increase in crude oil production in line agreed by the Organization of the Petroleum Exporting Countries and independent producers," the report noted.

Oil prices have risen by more than 70 percent since June last year to over $80 a barrel.

In a recent report, Riyadh-based Jadwa Investment also revised upwards its forecast on Saudi Arabia’s 2018 economic growth to 2.2 percent in July, from its previous estimate of 1.5 percent.