Mubasher TV
Contact Us Advertising   العربية

Saudi non-oil growth up to 1.7% in 2017 - IMF

Saudi non-oil growth up to 1.7% in 2017 - IMF
The International Monetary Fund

Riyadh - Mubasher: The International Monetary Fund (IMF) is expecting non-oil growth in Saudi Arabia to register 1.7% in 2017, according to a recent report.

The fund said in a statement on Friday that the structural economic reforms will boost growth on the medium run, noting that the risks faced by the Saudi economy are the uncertainty regarding oil prices, as well as the decline in the employment, as unemployment rate reached 12.3%.

The budget deficit is forecasted to drop significantly in the coming years, according to the IMF, from 17.2% of GDP in 2016 to 9.3% this year.

The report stated that “Saudi Arabia has embarked on a bold reform program under Vision 2030 that was announced in 2016. The authorities have made considerable progress in initiating the implementation of their ambitious reform agenda.”

“Fiscal consolidation efforts are beginning to bear fruit, progress with reforms to improve the business environment are gaining momentum, and a framework to increase the transparency and accountability of government is largely in place.”

“Effective prioritization, sequencing, and coordination of the reforms is essential, and they need to be well-communicated and equitable to gain social buy-in and ensure their success,” the report indicated.

“The current account balance is expected to move into a small surplus in 2017 as oil export revenues increase and import growth and remittance outflows remain relatively subdued.”

Credit and deposit growth are weak and are only expected to recover gradually. Interbank interest rates, which spiked higher during 2016, have fallen, and liquidity in the banking system is at adequate levels, it added.