Washington- The International Monetary Fund has lauded the economic reform program of Saudi Vision 2030 after it made great progress in implementing its ambitious agenda, saying fiscal consolidation efforts are beginning to bear fruit.
“Non-oil growth is projected to pick up to 1.7 percent in 2017, but overall real GDP growth is expected to be close to zero as oil GDP declines in line with Saudi Arabia’s commitments under the OPEC+ agreement,” the IMF said on Friday after its executive board concluded the Article IV Consultation with Saudi Arabia.
“The fiscal deficit is projected to narrow substantially in the coming years. It is expected to decline from 17.2 percent of GDP in 2016 to 9.3 percent of GDP in 2017 and to just under 1 percent of GDP by 2022,” it said.
The IMF executive board noted that the Saudi economy is adjusting to the effects of lower oil prices and fiscal consolidation, but that non‑oil growth is expected to pick up this year.
The directors also commended the kingdom’s measures in fiscal consolidation through the Fiscal Balance Program.