DUBAI, (Reuters) – Saudi Arabia’s near-term economic outlook is favourable but the OPEC member should carefully monitor possible inflationary pressures following a recent increase in social spending, the International Monetary Fund said on Tuesday.

The fund revised down its forecast for Saudi Arabia’s fiscal surplus to 9.3 percent of gross domestic product in 2011, from 12.8 percent seen in April, it said after concluding its annual consultation with the kingdom.

The forecast for the 2011 current account surplus of the world’s No.1 oil exporter was revised up to 20.1 percent of GDP, from a previous 19.8 percent.