IMF lauds Saudi Arabia’s financial prosperity and reform progress

by ADeeL

Saudi Gazette report

RIYADH — In a extremely anticipated report following the conclusion of their 2023 Article IV Session discussions with Saudi Arabia, the Worldwide Financial Fund (IMF) has issued a convincing vote of confidence within the nation’s financial well being and reform initiatives.

The IMF’s complete evaluation affirmed that Saudi Arabia is at present having fun with a interval of strong financial development, with a powerful fiscal place and notable progress in implementing its formidable Saudi Imaginative and prescient 2030 reform agenda.

Listed below are the important thing takeaways from the IMF report:

Saudi Arabia was hailed as one of many fastest-growing G20 economies in 2022, registering a formidable development price of 8.7%. Non-oil GDP additionally continued to surge at round 4.8%, whereas unemployment amongst Saudi residents reached its historic low at simply 8%.

Saudi Arabia has achieved exceptional strides in growing feminine participation within the labor market, with girls now constituting about 37%, exceeding the 2030 goal of 30% set by Saudi Imaginative and prescient 2030.

The report recommended the Kingdom’s efforts in containing inflation, noting {that a} mixture of home subsidies, value caps on choose merchandise, and the energy of the US greenback contributed to conserving the patron value index (CPI) at a reasonable 2.5% in 2022.

The IMF emphasised that Saudi Imaginative and prescient 2030’s reforms are on monitor to cut back the nation’s dependence on oil. Non-oil GDP development is projected to proceed its sturdy trajectory, with a median development price anticipated to succeed in 4.9% in 2023.

Saudi Arabia’s fiscal insurance policies and reforms have led to low and sustainable debt ranges, offering a powerful fiscal area. The IMF applauded the Kingdom’s efforts to enhance non-oil revenues, rationalize spending, and improve public finance transparency.

The report acknowledged that Saudi Arabia’s mounted alternate price coverage is well-suited to the Kingdom’s economic system. The banking sector stays robust, with excessive profitability charges, capital adequacy ratios, and low non-performing mortgage ratios.

The IMF praised Saudi Arabia’s dedication to environmental initiatives, together with changing into the biggest producer of fresh hydrogen globally and lowering carbon emissions, positioning the Kingdom as a pacesetter in sustainability.

Saudi Arabia’s digital transformation efforts earned recognition, with excessive rankings in international digitization metrics. The digital progress has improved monetary inclusion, the resilience of the monetary sector, and authorities effectiveness.

In response to the IMF report, Finance Minister Mohammed Al Jadaan expressed his satisfaction with the Fund’s acknowledgment of the Kingdom’s financial reforms and strong fiscal place. Al Jadaan famous that the report highlighted each present achievements and promising prospects for the Saudi economic system.

The IMF’s evaluation underscores Saudi Arabia’s resilience within the face of challenges, attributing its success to financial and structural reforms which have fostered sustainable and inclusive development.

This newest IMF report aligns with the earlier assertion issued by the Fund following the conclusion of the 2023 Article IV Consultations with the Kingdom’s authorities, confirming the optimistic trajectory of Saudi Arabia’s financial transformation.

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