Saudi Arabia was right to slow down fiscal reforms, says IMF chief

Saudi Arabia’s decision to slow its pace of fiscal reforms was appropriate, as the country’s economy begins to recover following the contraction last year, IMF managing director Christine Lagarde said following her meeting with Crown Prince Mohammed bin Salman on Friday.

“Crown Prince Mohammed bin Salman and I discussed recent economic developments in Saudi Arabia and the ongoing economic reforms,” Lagarde said.

“The authorities are continuing to make good progress in implementing their ambitious reform agenda including through the recent introduction of the VAT and measures to increase women’s participation in the economy,” she added.

She also said that the International Monetary Fund (IMF) expects Saudi Arabia’s real GDP growth to pick-up pace in 2018.

In January, the IMF had revised upwards its forecast on Saudi Arabia’s economic growth in 2018 to 1.6 percent, noting the support from stronger oil prices.

The Fund expects Saudi GDP growth at 2.2 percent in 2019.