The Saudi Ministry of Finance welcomed the recent report from the International Monetary Fund (IMF) following its 2025 Article IV Consultation with the Kingdom, which highlighted Saudi Arabia's strong resilience to external economic shocks and challenges.
It also noted the continued expansion of non-oil economic activities, the successful containment of inflation, and a decline in the unemployment rate to historic lows.
The report praised the Kingdom's efforts in disclosing fiscal data and analyzing risks to public finances. It highlighted the strength of medium-term investment plans and their financing methods, noting the government's shift toward medium-term financial planning.
The report also commended the proactive approach of setting spending ceilings for all entities until 2030. It explained that the direct impact of global trade tensions on the Kingdom is limited, and that strong domestic demand coupled with the easing of OPEC+ production cuts will drive economic growth, even amid heightened global uncertainty.
The report underscored the continued strong growth of the Saudi economy, driven by private investment and consumption. It said that real non-oil GDP grew by 4.5% in 2024 and non-oil private investment saw an increase of 6.3% year-on-year.
The report stated that strong domestic demand will continue to drive growth in the Kingdom, despite increasing global uncertainty and declining commodity price expectations. Real non-oil GDP is projected to grow by 3.4% in 2025, fueled by the ongoing implementation of ambitious Vision 2030 projects and robust credit growth.
The report hailed the Kingdom's efforts to analyze various scenarios and develop proactive plans to ensure the sustainability of public finances in the event of major shocks. It also stressed that prioritizing high-impact projects is a wise strategy for maintaining fiscal sustainability.
