#Saudi Arabia #Riyadh #Economic Growth #Saudi Ministry #IMF Report

Saudi Ministry of Finance Welcomes the 2025 IMF Article IV Consultation Report

In a significant endorsement of its economic strategy, the Saudi Ministry of Finance expressed approval for the recently published 2025 Article IV consultation report by the International Monetary Fund (IMF). This report underscores the Kingdom's robust economic resilience and its capacity to address external economic shocks and challenges.

The IMF's analysis highlights several key areas of strength within Saudi Arabia's economy. Notably, the country has shown a continuous expansion in its non-oil economic activities, reflecting a strategic diversification effort. Furthermore, there has been an impressive containment of inflation rates, coupled with a notable reduction in the unemployment rate, which has reached historic lows.

The report also lauds Saudi Arabia's proactive approach to fiscal data transparency and the analysis of risks associated with public finance. Notably, the government's move towards medium-term financial planning is commended along with its initiatives to set spending ceilings until 2030. The findings indicate that the economic impact of escalating global trade tensions on the Kingdom remains limited. A strong domestic demand, together with the easing of OPEC+ production cuts, is expected to bolster economic growth amidst growing global uncertainties.

Moreover, the IMF report reveals that the Saudi economy continues to thrive, driven largely by private investment and consumption patterns. The real non-oil GDP is projected to have increased by 4.5% in 2024, fueled by retail expansion, hospitality, and construction sectors alongside a 6.3% yearly increase in non-oil private investment.

Looking ahead, the report anticipates that despite rising global uncertainties and declining commodity price expectations, the robust domestic demand will sustain growth. It forecasts a real non-oil GDP growth of 3.4% for 2025, continuing the momentum of ambitious projects outlined in Saudi Vision 2030 and a surge in credit growth.

The report stresses the importance of assessing various scenarios and implementing proactive plans to ensure the viability of public finances in the face of significant shocks. The emphasis on high-impact projects is recognized as a prudent strategy to maintain fiscal sustainability.

The positive feedback from the IMF underscores Saudi Arabia's commitment to economic reform and its efforts to diversify its economy beyond oil dependence. These initiatives are critical as the Kingdom positions itself for sustainable growth amidst an evolving global economic landscape.

In summary, the Ministry of Finance's welcome of the 2025 IMF Article IV consultation report signifies a strong endorsement of Saudi Arabia's economic policy direction and highlights the Kingdom's readiness to navigate future challenges while pursuing growth and development objectives aligned with long-term national vision strategies.