Saudi Gazette report
RIYADH — The Worldwide Financial Fund’s Government Board has recommended Saudi Arabia’s robust financial efficiency, resilience to exterior shocks, and success in advancing diversification methods, saying the Kingdom’s medium-term outlook stays sturdy regardless of world uncertainty and weaker commodity costs.
In its concluding assertion following the 2025 Article IV consultations, the IMF stated Saudi Arabia’s non-oil sector is driving development, inflation stays contained, and unemployment amongst Saudi nationals fell to a report low of seven % within the fourth quarter of 2024.
The IMF attributed the features to fiscal self-discipline, structural reforms, and continued funding underneath Imaginative and prescient 2030, which have helped steadiness fiscal stability with financial transformation targets.
Non-oil GDP expanded 4.5 % in 2024, led by retail, hospitality, and building, whereas oil GDP contracted 4.4 % as a consequence of OPEC+ manufacturing cuts, leading to general GDP development of two %.
The present account shifted from a 2.9 % surplus to a 0.5 % deficit, financed by exterior borrowing and diminished international asset accumulation.
Saudi international reserves stay robust at $415 billion, masking 187 % of the IMF’s reserve adequacy metric.
The IMF raised its development forecast for Saudi Arabia to three.6 % in 2025 from 3 % in April, projecting actual GDP to speed up to three.9 % by 2026 as oil output step by step recovers.
Non-oil development is anticipated to exceed 3.5 % over the medium time period, supported by Imaginative and prescient 2030 tasks and main worldwide occasions.
Whereas warning of dangers from weaker oil demand, decrease authorities spending, or regional safety tensions, the IMF stated upside potential exists if oil manufacturing rises or further Imaginative and prescient 2030 investments are made.
Board administrators praised progress in strengthening public finance establishments, the shift to five-year medium-term fiscal planning, and proactive expenditure ceilings by way of 2030.
They inspired counter-cyclical fiscal coverage to assist development and welcomed the resilience of the banking sector, which stays well-capitalized and worthwhile with non-performing loans at 1.2 % in 2024.
The report additionally highlighted preparations for the 2034 FIFA World Cup, estimating $26 billion in infrastructure funding that would contribute $9–14 billion to GDP, and famous a modernized funding regulation guaranteeing equal remedy for home and international buyers.
IMF administrators referred to as Saudi Arabia’s structural reforms since 2016 “spectacular,” citing improved regulatory and enterprise environments, rising feminine workforce participation, and human capital improvement.
They urged continued efforts to draw personal funding and diversify the economic system no matter oil value fluctuations.
The IMF additionally acknowledged the Kingdom’s regional management and energetic participation in multilateral boards, together with the G20, stressing its position in addressing world challenges.