IMF’s revised growth forecast proves efficiency of Saudi reforms, says Al-Jadaan

International Monetary Fund’s (IMF) recently raised its forecast on Saudi Arabia’s growth due to the “positive impact” of Vision 2030’s Fiscal Balance Program, Saudi Press Agency (SPA) reported, citing Mohammed Al-Jadaan, Finance Minister.

IMF said the Saudi economy is expected to grow by 2.2 percent this year, up 0.3 percentage points from its July projections. It also raised projections for 2019 growth to 2.4 percent from its earlier estimate of 1.9 percent.

The Kingdom’s financial strategy is to reduce deficit, support financial sustainability, develop new methods of subsidies and social expenditure, and revamp the overall infrastructure.

The strategy also aims to stimulate the private sector, develop local production and service sectors, as well as new activities in order to support the medium-term economic growth and employment, he said.

While the increase in oil production has helped boost economic growth projections, non-oil gross domestic product (GDP) has been consistently improving.

Preliminary economic indicators reflect that growth, as the Kingdom’s GDP rose by 1.4 percent in H1 2018 versus a negative 0.8 percent a year earlier.

Non-oil GDP increased 2 percent compared to 0.1 percent in H1 2017.

The Ministry of Finance’s preliminary results show that the real annual GDP will reach 2.3 percent in 2019, expecting that the structural reforms will further improve economic growth on the medium-and long-term, Al-Jadaan said.