Al-Jadaan: IMF projections of Saudi growth show positive impact of economic reforms

Minister of Finance Mohammed Al-Jadaan

Saudi Gazette report

Minister of Finance Mohammed Al-Jadaan said that the updated forecasts of International Monetary Fund (IMF) about the Saudi growth have proved the effectiveness and positive impact of economic reforms and fiscal measures implemented by the government in accordance with the Fiscal Balance Program and Vision 2030.

He made these remarks while commenting on the World Economic Outlook report (WEO), published by IMF on Wednesday. The report will be discussed at the IMF and World Bank annual meetings, which will begin in Bali, Indonesia on Friday.

The WEO report showed a decrease in the global growth projections and cut in most developed and emerging economies growths estimates for 2018 and 2019. On other hand, Saudi output is projected to expand by 2.2 percent in 2018 and 2.4 percent in 2019.

Al-Jadaan said that the public finance strategy, adopted by the Kingdom, will reduce the deficit rates, enhance sustainability, develop social spending habits, modernize infrastructure, stimulate the private sector, and develop services sector to support economic growth and employment in the medium term.

“Although the oil production surge has boosted the economic growth estimates, the non-oil GDP growth continues to recover in the medium term. Preliminary economic data indicate the Saudi progress,” he said.

The GDP grew by 1.4 percent in the first half of 2018 compared to a negative growth of 0.8 percent for the same period in the previous year, due to non-oil GDP recovery of 2 percent in 2018 compared to 0.1 percent previous year. Ministry of Finance forecasts the annual real GDP to reach 2.3 percent in 2019. Moreover, the structural economic reforms are expected to boost growth in the medium and long term, he added.