Ministry of Finance: IMF Article IV Consultation Report Praises Expansion of Non-Oil Economic Activities

The Ministry of Finance welcomed the International Monetary Fund’s Article IV Consultation Report for the Kingdom of Saudi Arabia for 2025, which confirmed the Kingdom’s resilience and strong ability to confront external economic shocks and challenges, the continued expansion of its non-oil economic activities, its ability to contain inflation, and its historically low unemployment rate.

The report highlighted the efforts made in disclosing public finance data and in studying and analyzing risks surrounding public finances. It praised the medium-term investment plans and their financing methods, the government’s transition to medium-term fiscal planning, and the proactive approach taken in setting spending ceilings for all agencies until 2030. It explained that the direct impact of escalating global trade tensions on the Kingdom is limited, and that strong domestic demand and the easing of OPEC+ production cuts will drive economic growth despite increasing global uncertainty. It indicated continued strong growth in the Saudi economy, driven by investment and private consumption, with real non-oil GDP expanding by 4.5% in 2024, and non-oil private investment growing by 6.3% year-on-year.

The report indicated that, amid increasing global uncertainty and declining commodity price expectations, strong domestic demand will continue to drive growth in the Kingdom. Real non-oil GDP growth is expected to reach 3.4% in 2025, driven by the continued implementation of ambitious Vision 2030 projects and strong credit growth.

The report welcomed the Kingdom’s efforts to analyze a number of scenarios and develop proactive plans to ensure the sustainability of public finances in the event of severe shocks, emphasizing that prioritizing high-impact projects represents a wise approach to maintaining public finance sustainability.