Saudi Economy Demonstrates Resilience Amid Global Uncertainty: IMF
Non-oil activities expanding; inflation contained; unemployment at record-low levels.
The International Monetary Fund (IMF) has commended Saudi Arabia's economy for demonstrating strong resilience to global economic shocks.
According to the IMF, non-oil activities in the Kingdom are expanding while inflation remains contained and unemployment is at record-low levels.
These developments align with the targets set by Vision 2030, an economic diversification program launched by the Saudi government.
The IMF noted that despite heightened global uncertainty, Saudi Arabia's economy continues to grow robustly due to ongoing implementation of Vision 2030 projects through public and private investment.
The non-oil real GDP growth is projected at 3.4 percent in 2025, reflecting strong domestic demand, buoyed by government-led initiatives.
The IMF statement praised the efforts of the Saudi Central Bank (SAMA) to enhance its liquidity management framework and strengthen regulatory frameworks, which are key to preserving financial stability.
The banking sector remains resilient with a capital adequacy ratio of 19.6 percent at the end of 2024, and bank profitability remains strong.
The labor market is also showing strong momentum, with the unemployment rate for Saudi nationals declining to a record low of 7 percent in 2024.
This marks a significant improvement compared to previous years, with both youth and female unemployment rates halved over a four-year period.
Overall, the IMF emphasized that continued efforts on structural reforms are essential to sustaining non-oil growth and achieving economic diversification goals.
According to the IMF, non-oil activities in the Kingdom are expanding while inflation remains contained and unemployment is at record-low levels.
These developments align with the targets set by Vision 2030, an economic diversification program launched by the Saudi government.
The IMF noted that despite heightened global uncertainty, Saudi Arabia's economy continues to grow robustly due to ongoing implementation of Vision 2030 projects through public and private investment.
The non-oil real GDP growth is projected at 3.4 percent in 2025, reflecting strong domestic demand, buoyed by government-led initiatives.
The IMF statement praised the efforts of the Saudi Central Bank (SAMA) to enhance its liquidity management framework and strengthen regulatory frameworks, which are key to preserving financial stability.
The banking sector remains resilient with a capital adequacy ratio of 19.6 percent at the end of 2024, and bank profitability remains strong.
The labor market is also showing strong momentum, with the unemployment rate for Saudi nationals declining to a record low of 7 percent in 2024.
This marks a significant improvement compared to previous years, with both youth and female unemployment rates halved over a four-year period.
Overall, the IMF emphasized that continued efforts on structural reforms are essential to sustaining non-oil growth and achieving economic diversification goals.
