RIYADH: The International Monetary Fund claims that Saudi Arabia’s “unprecedented economic transformation” is going well because of wise government policies and effective diversification initiatives. In a report on the Kingdom’s shifting economic landscape, the organization identified growing domestic demand, ongoing financial reforms, and environmental policies as areas of strength.
The results are being released shortly after data from the Organization for Economic Co-operation and Development indicated that Saudi Arabia’s economy grew faster than the G20 average in the year’s first three months.
In a statement released to commemorate the conclusion of the IMF’s formal visit to the Kingdom, the body predicted that Saudi Arabia’s GDP growth would reach a peak of approximately 4.5 percent in 2025, after which it is expected to stabilize at 3.5 percent annually in the medium run.
It predicted that non-oil growth would reach 3.5 percent in 2024 “before picking up in 2025 onwards.” Oil output is projected to contract by 4.6 percent in 2024 but increase by 5.1 percent in 2025, reflecting an extension of oil production cuts in 2024 and a gradual recovery to 10 Mbps in 2025,” the statement continued.
“Building on these successes, it will be important to maintain the momentum of non-oil growth, ensure intergenerational equity, maintain financial sector stability, and continue mitigating risks of overheating,” the report continued.
The IMF commended the Kingdom’s efforts to establish itself as a haven for the growth of the private sector and welcomed the “recent recalibration” of funding requirements related to the Vision 2030 objectives.
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