DUBAI
\nGovernment-led reforms and the growth of private investment in new sectors will help support non-oil economic growth in Saudi Arabia amid an expected sharp slowdown in overall growth this year, a senior IMF official said.
\nThe Saudi economy grew 8.7% last year, as high oil prices boosted revenue and led to the kingdom\u2019s first budget surplus in almost 10 years.
\nThe IMF projects that Saudi GDP growth will more than halve, to 3.1%, this year, in line with the forecast for Middle East oil exporters. The forecast, however, is higher than the 2.6% growth rate that the IMF projected in January.
\nSeveral OPEC+ member states, led by Saudi Arabia, the world\u2019s top crude exporter, recently announced surprise cuts to oil production from May, initially driving up global prices, although global worries and an uncertain demand outlook are weighing on prices.
\n\u201cThis year, with the implementation of the new OPEC+ quotas, we expect the oil sector to slow down,\u201d Jihad Azour, director for the Middle East and Central Asia at the IMF, told Reuters, adding that the impact on the kingdom\u2019s budget depended on prices.
\n\u201cThe drop in production will affect growth because output will decline, but revenues could grow and this could have a positive impact on both external accounts, the reserves, and the budget deficit,\u201d he said.
\n\u201cClearly, the strategy over the last five to six years has helped the Saudi economy, and also the public finances, to be less dependent on the cycle of oil.\u201d
\nSaudi Arabia has embarked on an ambitious economic transformation plan known as Vision 2030, investing billions to diversify into sectors such as tourism, launch massive infrastructure projects, and develop the financial and private sectors.
\n\u201cThe size of the non-oil economy is growing and it\u2019s mainly driven by the private sector,\u201d Azour said.<\/p>\n","protected":false},"excerpt":{"rendered":"
DUBAI Government-led reforms and the growth of private investment in new sectors will help support non-oil economic growth in Saudi Arabia amid an expected sharp slowdown in overall growth this year, a senior IMF official said. The Saudi economy grew 8.7% last year, as high oil prices boosted revenue and led to the kingdom\u2019s first […]<\/p>\n","protected":false},"author":2,"featured_media":329165,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-329143","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"yoast_head":"\n