IMF: Gov. Strategy Helped the Saudi Economy

IMF: Gov. Strategy Helped the Saudi Economy

The International Monetary Fund (IMF) confirmed that government-led reforms and private investment growth in new sectors would help support non-oil economic growth in Saudi Arabia to be less dependent on oil.

The Saudi economy grew 8.7 percent last year, while the real GDP during the fourth quarter of 2022 increased 5.5 percent compared to Q4/2021, according to the General Authority for Statistics (GASTAT).

The IMF projected that Saudi GDP growth would more than halve, to 3.1 percent, this year, in line with the forecast for Middle East oil exporters.

The forecast, however, is higher than the 2.6 percent growth rate that the IMF projected in January.

The director for the Middle East and Central Asia at the IMF, Jihad Azour, told Reuters that the oil sector is expected to slow down with the implementation of the new OPEC+ quotas.

Azour added that the impact on the Kingdom's budget depended on prices.

He said that the drop in production will affect growth because output will decline, and that revenues could grow, which could have a positive impact on both external accounts, the reserves, and the budget deficit.

Azour added that the government's strategy over the past five years has helped the Saudi and public finances to be less