‎IMF says Saudi economy recovering strongly, expects growth to accelerate on reforms

‎IMF says Saudi economy recovering strongly, expects growth to accelerate on reforms

Saudi Arabia is recovering strongly following a deep pandemic-induced recession, experts of the International Monetary Fund (IMF) stated in a report, following the conclusion of the 2022 Article IV consultation with Saudi Arabia.

They added that the expected economic prospects improved significantly on the receding effects of the pandemic, high oil output and prices, as well as strengthening economy.

This performance reflects the early support provided by policies during the pandemic and strong reforms implemented within the framework of the structural reforms agenda as part of Vision 2030. This was also driven by the rise in international oil prices and boosting oil production. Accordingly, the Saudi authorities should continue the momentum of reforms.

According to the statement, inflation in the Kingdom is still under control, and is expected to decline to 2.8% in 2022, despite some expected inflationary pressures as a result of wholesale price inflation and high shipping rates.

The growth rates will exceed 7% in 2022, and the pressure may be contained, the IMF stated, adding that the current account surplus is also expected to reach more than 17% of GDP, the highest level since 2012.

High oil prices will reflect positively on the Kingdom, especially in terms of oil revenues and capital