The International Monetary Fund (IMF) has recently reported that the unemployment rate in Saudi Arabia is at historic lows. The IMF forecast predicts that non-oil growth in the country will reach approximately 3.5 percent this year. This positive growth is attributed to the precautionary macroeconomic policies and transformations implemented in the Kingdom. These changes have helped to stimulate non-oil growth and boost the economy.
In addition to low unemployment rates, inflation in Saudi Arabia has remained contained. The IMF also welcomed the recent amendments made to financing requirements related to the goals of Vision 2030. These changes are seen as positive steps towards economic stability and growth in the country. The IMF’s statement on the results of its Article Four Mission highlighted the strength of economic activity in Saudi Arabia, despite a 9 percent contraction in oil GDP in 2023.
The contraction in oil GDP was primarily due to the OPEC+ agreement for voluntary oil production cuts. This led to a 0.8 percent contraction in the overall gross domestic product (GDP) of Saudi Arabia. Despite this, the IMF revised its growth forecast for the Saudi economy upwards by 0.5 percent to 6 percent for 2025. This increase in growth projections is a positive sign for the Kingdom’s economy and shows resilience in the face of external pressures and challenges.
Looking ahead, the IMF expects the Saudi economy to continue growing at a steady pace. The Fund forecasts a 2.6 percent growth for 2024, although this is slightly lower than the previous projection of 2.7 percent in January. Overall, the IMF remains optimistic about the economic prospects of Saudi Arabia, citing strong economic activity and positive indicators such as low unemployment rates and contained inflation.
In conclusion, the IMF’s report on Saudi Arabia’s economic performance highlights the positive growth trends in the country. The low unemployment rates and contained inflation are signs of a stable economy that is on track for further growth. The amendments to financing requirements related to Vision 2030 goals are expected to support economic development in the Kingdom. With the IMF revising growth projections upwards for the Saudi economy, it is clear that the country’s economy is resilient and well-positioned for future growth.
