IMF: Saudi economy to grow 7.6% in 2022

In its preliminary statement, the International Monetary Fund (IMF) praised the Saudi economy and its strong financial position as the Kingdom contains inflation.

According to the statement, the IMF expected the Kingdom’s GDP to grow by 7.6% in the current year 2022 AD, non-oil growth to rise to 4.2%, and an increase in the current account surplus to 17.4% of GDP, as well as containing overall inflation at 2.8% on average.

It indicated that the Kingdom has succeeded in dealing with the Corona Virus (Covid-19) pandemic, stressing that it is in a favorable position to overcome the risks posed by the war in Ukraine and the monetary policy tightening cycle in advanced economies, noting that its economic activity is witnessing a strong improvement supported higher oil prices and the reforms undertaken by the government in line with Vision 2030. The limited impact of tightening global conditions thanks to the strong levels of capitalization enjoyed by the banking sector.

It also affirmed that the Kingdom’s economic prospects are positive in the short and medium term, with the continued recovery of economic growth rates, containment of inflation, and the strength of its external economic position will increase.

The statement referred to the increased participation of citizens in the labor force; a decrease in the unemployment rate to 11%, and decline of 1.6 percentage points from 2020, as a result of the high rates of employment of Saudi citizens, especially women, in the private sector.