Riyadh – Mubasher: Saudi Arabia’s economy is expected to grow 1.7% this year and 1.9% in 2019, the International Monetary Fund (IMF) said in a recent report.
"The world economy continues to show broad-based momentum. Against that positive backdrop, the prospect of a similarly broad-based conflict over trade presents a jarring picture," according to the IMF’s report.
In spite of the good near-term news, prospects are more sobering in the long run, the report entitled “Global Economy: Good News for Now but Trade Tensions a Threat” showed.
Due to aging populations, lower rates of labor force participation and productivity growth, economies of developed nations aren't expected to regain their pre-global financial crisis per capita growth rates, the IMF cited.
“Emerging and developing economies present a diverse picture, and among those that are not commodity exporters, some can expect longer-term growth rates comparable to pre-crisis rates,” the report highlighted.
In the same vein, the IMF said that many commodity exporters will not be so lucky, however, despite some improvement in the outlook for commodity prices.
Those nations will be in need to diversify their economies to bolster future growth and resilience, the report said.
