RIYADH — The Ministry of Finance welcomed the IMF statement issued at the conclusion of the staff mission for the Kingdom 2021 Article IV. The statement underscored the positive results of the Saudi economic reforms, projected continuation in the economic recovery, and expected decline in the unemployment rate and inflation.
The IMF projected real GDP growth at 2.1% this year and 4.8 % in 2022 (compared to a contraction of -4.1 % in 2020) and rebounded recovery of real non-oil GDP growth in the second half of 2020. The high-frequency indicators also suggest continued recovery in 2021.
The real non-oil GDP growth recovery is projected to reach 3.9% in 2021 and 3.6% in 2022 compared to a decline of 2.3 % in 2020.
In light of the production levels agreed by OPEC+, real oil GDP growth is projected to reach -0.5% in 2021 (compared to -6.7% in 2020), and 6.8 % in 2022 as the OPEC+ agreement is assumed to end as announced.
The statement underscored the success of the Saudi government’s swift