Saudi Arabia’s economic prospects positive in short, medium-term: IMF

Kingdom of Saudi Arabia's flag

Saudi Arabia’s solid economy and financial position were lauded by the International Monetary Fund’s (IMF) experts in the statement issued after the conclusion of Article IV consultations. 

The Kingdom's economic prospects are positive in the short and medium-term, amid the continued recovery of economic growth rates, containment of inflation, in addition to its robust external economic position. 

According to the statement, the IMF expects Saudi Arabia’s gross domestic product (GDP) to grow by 7.6% in 2022 and non-oil sector to rise to 4.2%. In addition, the current account surplus will likely grow to 17.4% of GDP in 2022, its highest since 2013. The overall inflation would be contained at an average of 2.8%.

The Kingdom succeeded in dealing with the coronavirus pandemic, the experts stated, adding the government’s continued implementation of structural reforms will help ensure a strong, comprehensive and environmentally-friendly recovery.

The country recovers strongly in the wake of the recession caused by the pandemic.

The unemployment rate hit 11%, a decrease of 1.6 percentage points compared to 2020, due to high employment rates of Saudi citizens, especially women, in the private sector.

The experts also predicted the Kingdom to show stronger public finance in 2022, noting that the debt-to-GDP ratio would decline this year. In addition, the surplus will likely constitute 5.6% of GDP in 2022.