The International Monetary Fund issued a positive report on the Saudi economy at the conclusion of the Article IV consultations for the current year. Praising the strength of the recovery from the repercussions of the Corona pandemic, thanks to the strength of liquidity and public finances, and the momentum of reforms within Vision 2030, in addition to the high oil prices, strong growth rates, the success in containing inflation, and the solidity of the financial sector.
The IMF indicated that the growth rate in 2021 amounted to 3.2 percent, driven by the recovery of the non-oil sector, with the high rates of employment of the Saudi workforce, and the increase in women's participation. The Fund expects the growth of the Saudi economy to reach 7.6 percent this year, despite the tightening of monetary policy and financial control and the repercussions of the war in Ukraine, which remain limited.
The IMF expects non-oil GDP growth to reach 4.2 percent this year and 3.7 percent next year. The Fund praised the Kingdom's ability to contain inflation, which is expected to reach 2.8 percent this year and 2.2 percent in 2023. The surplus in the kingdom's budget for the current year is expected to reach 5.5 percent of GDP this year and 4.9 percent of GDP next year. As for public debt, it is expected to decline to 24.3% of GDP this year from 30% last year.
Source (Al-Arabiya.net Website, Edited)
