|US, high inflation through 2023|
Meanwhile, the US is projected to experience high inflation through 2023, with an estimated real domestic GDP growth of 2.3 percent, less than half of last year's level of 5.7 percent. Saudi GDP growth followed the economic hit from the Covid pandemic in 2020, when its economy contracted by 3.4 percent, compared to 2.3 percent in the US.
The International Monetary Fund (IMF) said high oil prices are likely to push Saudi Arabia's economic growth to surpass the United States (US) this year. In a report published last week, the IMF estimated that the kingdom's Gross Domestic Product (GDP) would grow by 7.6 percent in 2022, the fastest rate of expansion in nearly a decade. "Saudi Arabia is likely to become one of the fastest growing economies in the world this year due to sweeping pro-business reforms and a sharp rise in oil prices and the recovery of production forces from the recession caused by the pandemic," the report said.
According to the IMF, as quoted by RT, the economic outlook will depend on whether the kingdom spends too much of its oil revenues. The fund also noted that the US economy will face a number of headwinds, with inflation expected to average 6.6 percent this year, down from the current 8.5 percent rate. Meanwhile, Saudi Arabia is expected to maintain average inflation at 2.8 percent throughout the year.