#Saudi Arabia #Riyadh #IMF #Ministry of Finance

Saudi Arabia's Economic Resilience: A Look at the 2025 IMF Report

On August 5, 2025, the Saudi Ministry of Finance expressed its satisfaction with the recent report from the International Monetary Fund (IMF) regarding the 2025 Article IV consultations with the Kingdom. This report emphasizes Saudi Arabia’s capability to withstand external economic pressures and challenges, showcasing an unwavering commitment to economic diversity beyond oil.

Highlights from the Report

In its findings, the IMF noted the continual growth of non-oil economic sectors, which have contributed significantly to the kingdom's overall economic landscape. The report also mentioned Saudi Arabia’s success in stabilizing inflation rates and reducing the unemployment rate to historic lows. It recognized the government's proactive measures in financial disclosures and the analysis of public finance risks, all while commending the medium-term investment strategies established by the Ministry of Finance.

The IMF highlighted how Saudi Arabia is transitioning to a structured financial planning approach, setting ambitious spending caps aimed at reinforcing economic stability through 2030. This delineated spending structure suggests a careful balancing of the country’s fiscal policy, ensuring that growth remains continual even amidst the rising global trade tensions.

Resilient Economic Growth

The report points to a thriving domestic economy, driven primarily by private investments and consumer spending. Real non-oil GDP is projected to have grown by an impressive 4.5% in 2024, aided by expansions in various sectors, including retail, hospitality, and construction. Moreover, the data indicates that non-oil private investment has surged by 6.3% on a year-over-year basis.

Despite growing international economic uncertainties, the report underscores the strength of Saudi domestic demand, anticipating a real non-oil GDP growth of 3.4% in 2025. This growth is attributed to the progressive implementation of ambitious projects within the framework of Saudi Vision 2030, alongside promising credit growth that encourages further investment.

Ensuring Fiscal Sustainability

One of the report's focal points is the Saudi government's commitment to evaluating various economic scenarios and formulating proactive contingency plans to protect public finances in the event of severe economic shocks. By prioritizing high-impact projects, the Kingdom aims to maintain fiscal balance while striving for long-term sustainability.

Overall, the IMF's report serves as a testament to Saudi Arabia's economic vigor and strategic foresight, paving the way for sustained growth and stability in a rapidly evolving global economic landscape. The Ministry of Finance's acceptance of the report not only reflects confidence in the current economic trajectory but also commits to an ongoing dialogue with international finance bodies to secure further advancements in the nation’s economic framework.

Conclusion

As the Kingdom of Saudi Arabia embarks on its ambitious Vision 2030 initiatives, the encouraging insights presented in the IMF's report present a clear view of a resilient economy adaptable to both local and global challenges. Continuous efforts in fiscal planning and public investment are likely to bolster the country’s position on the international stage, ultimately leading to a more diversified and robust economic future.