IMF expects Saudi non-oil economy growth by 5% in 2023‎

The International Monetary Fund revealed that it expects the non-oil growth momentum in Saudi Arabia to remain strong, at an average of 5% in 2023.

According to “Al-Arabiya”, the fund’s mission to Saudi Arabia stated, at the end of the Article IV consultations for the year 2023, that the inflation rate in the Kingdom will remain at 2.8% in 2023, thanks to the strength of the currency, subsidies, and the maximum limits for gasoline prices.

The IMF pointed out that the intervention of the Saudi Central Bank twice eased liquidity pressures last year and returned the differences between “SIBOR” and “LIBOR” to their historical averages.

The Fund welcomed the efforts of the Saudi government to separate spending from fluctuations in oil prices, “by setting a rule for public finances and applying it decisively.”

The fund’s recommendations include expanding the scope of social programs in parallel with the pace of abolishing energy subsidies, continuing the efforts of the Authority for Efficient Spending and Government Projects, in addition to continuing to rationalize the wage bill in the public sector.

The fund recommended keeping the value-added tax at a minimum of 15%, moving forward with increasing the maximum ceiling for gasoline prices, and accelerating the raising of electricity and other fuel prices.