KSA Business: Saudi Arabia to post 7.6% growth this year: IMF – Gulf Digital News

KSA Business: Saudi Arabia to post 7.6% growth this year: IMF – Gulf Digital News

Saudi Arabia is recovering strongly following a deep pandemic-induced recession and the kingdom is expected to register a growth of 7.6% this year, an IMF report said.

Liquidity and fiscal support, reform momentum under Vision 2030, and high oil prices and production has helped the economy recover with a robust growth, contained inflation and a resilient financial sector, said a report issued following the conclusion of IMF Executive Board's the 2022 Article IV consultation with Saudi Arabia.

The receding effects of the pandemic, rising oil production/prices and a strengthening economy have improved the fiscal and external positions, the report said.

Robust growth

Overall growth was robust at 3.2 percent in 2021, in particular driven by a rebounding non-oil sector —supported by higher employment for Saudi nationals, particularly women — and is expected to increase significantly to 7.6 percent in 2022 despite monetary policy tightening and fiscal consolidation, and a, thus far, limited fall-out from the war in Ukraine. The non-oil GDP is expected to grow at 4.2%.

For 2023, IMF sees a GDP growth of 3.7% and non-oil growth of 3.8%, it said.

Over the medium term, growth is expected to accelerate as continued implementation of the reform agenda and the National Investment Strategy, supported by