The International Monetary Fund has revised down its forecast for Saudi Arabia's economic growth by about a percentage point, mainly due to oil production cuts.
The International Monetary Fund's World Economic Outlook report showed that the revision was the largest among major economies, and led to a decline in the Middle East and North Africa region's growth forecast for this year by half a percentage point from its level three months ago, to 2.2 percent.
Saudi Arabia is currently carrying out extensive economic reforms within the framework of what is known as the Kingdom's Vision 2030, with the aim of reducing its dependence on oil revenues.
The Public Investment Fund, the kingdom's sovereign wealth fund, is leading the effort, which has seen billions of dollars spent in sectors including electric cars, sports and projects to build modern cities.
Reuters reported in May that the PIF was considering a reorganization that would include reviewing some spending and setting new priorities for projects.
Saudi Arabia's GDP is expected to grow 1.7 percent this year, down 0.9 percentage points from the IMF's April estimate.
The fund said GDP is expected to grow 4.7 percent next year, down 1.3 percent from its April forecast.
The Kingdom, through the Organization of the Petroleum Exporting Countries (OPEC) and its allies in the so-called OPEC+ group, which includes Russia, led efforts to reduce oil production to support the market.
OPEC+ is currently implementing production cuts totaling 5.86 million barrels per day, or 5.7 percent of global demand.
The group agreed last month to begin a gradual, year-long phase-out of cuts of about 2.2 million barrels per day starting in October.
