IMF: Saudi Economic Outlook Is Positive

Saudi Arabia’s economic outlook remains “broadly positive” and the banking system is “fundamentally sound,” the International Monetary Fund (IMF) said. “Saudi Arabia was well prepared in confronting the global crisis, reflecting lessons learnt from the mid-1980s, when oil prices collapsed and the country experienced a severe banking crisis,” the IMF said. The kingdom has good supervisory and regulatory frameworks, prudent macroeconomic and financial politics, and its fiscal stimulus was well targeted, it added.

Providing jobs for a fast growing population through high and sustainable growth in non-oil industries is the main medium- term challenge, the IMF said. Inflation is likely to remain about 5% this year, reflecting persistence in rent and food inflation, before gradually slowing, the IMF said. Non-oil gross domestic product is projected to grow 4.5% this year, it said.- Bloomberg