Ministry Of Finance Welcomes IMF's 2025 Article IV Consultation Report On Saudi Economy

The Ministry of Finance has expressed satisfaction with the International Monetary Fund's (IMF) recent report following its 2025 Article IV Consultation with Saudi Arabia. The report highlights the Kingdom's resilience to external economic challenges and its successful management of inflation. Additionally, it notes a significant drop in unemployment rates to historic lows, reflecting the country's economic stability.

The IMF report commended Saudi Arabia for its transparency in fiscal data disclosure and risk analysis related to public finances. It praised the strength of medium-term investment plans and their financing strategies, acknowledging the government's shift towards medium-term financial planning. This approach includes setting spending limits for all entities until 2030, demonstrating a proactive fiscal strategy.

Saudi Arabia's economy continues to grow robustly, driven by private investment and consumption. The IMF report noted that real non-oil GDP grew by 4.5% in 2024, while non-oil private investment increased by 6.3% year-on-year. This growth is expected to persist despite global uncertainties and declining commodity price expectations.

Strong domestic demand is anticipated to sustain economic growth in Saudi Arabia, even amid global trade tensions. The easing of OPEC+ production cuts will further support this growth trajectory. Real non-oil GDP is projected to rise by 3.4% in 2025, bolstered by ongoing Vision 2030 projects and robust credit expansion.

The IMF report highlighted Saudi Arabia's efforts to analyze various scenarios and develop proactive plans for maintaining public finance sustainability during major shocks. Prioritizing high-impact projects is seen as a prudent strategy for ensuring fiscal stability over the long term.

The direct impact of global trade tensions on Saudi Arabia remains limited due to strong domestic demand. This internal strength, coupled with strategic planning, positions the Kingdom well for continued economic growth despite external uncertainties.

In conclusion, the IMF report underscores Saudi Arabia's strong economic performance and resilience in the face of global challenges. The Kingdom's commitment to transparency, strategic planning, and prioritization of impactful projects are key factors contributing to its sustained growth and fiscal stability.

With inputs from SPA