Saudi oil AND the economy are both down.

Saudi Arabia's economic growth will likely be one of the slowest among the Gulf Cooperation Council (GCC) countries this year, according to a Reuters poll of economists who lowered growth forecasts from three months ago due to extended oil output cuts.

The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, were expected to start raising production this year but in June said the reductions would continue well into 2025.

Despite the war in the Middle East, oil prices have struggled to stay above $80 per barrel, prompting the International Monetary Fund (IMF) to cut this year's growth forecast for Saudi Arabia, the largest economy in the region.

The latest Reuters poll of 24 economists taken July 8-22 showed Saudi Arabia's economy would expand 1.3% this year, down from 1.9% forecast in an April survey and substantially lower than the 3.0% predicted in January.

"Lower oil revenues are impacting non-oil growth. Saudi Arabia is in the process of an overhaul of Vision 2030 and adjusting investment spending...The impact on real GDP growth is clear – less investment means a more moderate growth outlook," said Ralf Wiegert, director of MENA economics at S&P Global Market Intelligence.

Economists said lower oil revenues were likely to constrain investments in non-oil sectors, affecting the overall expansion in 2024.