RIYADH, Saudi Arabia, Aug. 5, 2025 /PRNewswire/ -- The Saudi Ministry of Finance welcomed the report of the 2025 Article IV consultations with the Kingdom of Saudi Arabia that was issued recently by the International Monetary Fund (IMF). The report noted the Kingdom's resilience and strong ability to face external economic shocks and challenges, as well as the continued expansion of its non-oil economic activities, its ability to contain inflation, and the decline in the unemployment rate to its lowest levels in history.
The report highlighted the efforts made in disclosing fiscal data, and in studying and analyzing the risks surrounding public finances, while also praising medium-term investment plans and ways to finance them, the government's transition to medium-term financial planning, and the proactive approach adopted in setting spending ceilings for all parties until 2030. It also noted that the direct impact of the escalation of global trade tensions on the Kingdom is limited, and that strong domestic demand and the easing of OPEC+ production cuts will drive economic growth despite growing global uncertainty.
The report noted the continued strong growth in the Saudi economy, driven by private investment and consumption, and real non-oil GDP growing 4.5% in 2024 with the expansion of retail, hospitality, and construction, as well as non-oil private investment growing by 6.3% year-on-year.
The report said that, in light of increasing global uncertainty and the decline in expectations for commodity prices, strong domestic demand will continue to drive growth in the Kingdom, with real non-oil GDP growth expected to reach 3.4% in 2025, due to the continued implementation of ambitious Saudi Vision 2030 projects and strong credit growth.
The report also welcomed the Kingdom's efforts in analyzing a number of scenarios and developing proactive plans to ensure the sustainability of public finances in the event of strong shocks, stressing that prioritizing high-impact projects represents a wise approach to maintaining fiscal sustainability.
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