Saudi Arabia’s Economic Transformation Progressing Well, Says IMF
Saudi Arabia’s economic transformation is on track thanks to the International Monetary Fund praising the country’s prudent government policies and successful diversification efforts.
Strengths in Growing Domestic Demand and Financial Reforms Highlighted
The IMF’s report on the changing economic landscape of the Kingdom emphasized areas of strength such as growing domestic demand, ongoing financial reforms, and environmental policies.
Growth Above G20 Average in First Quarter of the Year
Recent figures released by the Organisation for Economic Co-operation and Development showed that Saudi Arabia’s economy experienced growth above the G20 average in the first three months of the year.
Projection of GDP Growth Acceleration
The IMF projected Saudi Arabia’s overall GDP growth to accelerate to around 4.5 percent in 2025 before stabilizing at 3.5 percent per year over the medium term. Non-oil growth is expected to reach 3.5 percent in 2024 before picking up in 2025 onwards.
Efforts to Diversify Economy Starting to Bear Fruit
The IMF noted that efforts to diversify the economy in Saudi Arabia have started to bear fruit, with a forecast of oil output contraction in 2024 followed by an increase in 2025.
Reforms and Successes in Business Environment and Foreign Investment
The IMF welcomed the recent recalibration of funding requirements associated with Vision 2030 objectives and praised Saudi Arabia’s drive to become a haven for private sector development. Reforms to enhance the business environment and attractiveness for foreign investment are progressing well.
Financial Sector Stability and Environmental Initiatives
The IMF described Saudi Arabia’s financial sector as being on a strong footing, with bank credit growth expected to remain at around 10 percent in 2024. The report also highlighted the Kingdom’s environmental initiatives, emphasizing its commitment to achieving net zero emissions by 2060.