The International Monetary Fund (IMF) published yesterday the World Economic Outlook report (WEO), which will be discussed in the IMF and World Bank annual meetings in Bali, Indonesia, during the period 12-14 October 2018.
The IMF's updated World Economic Outlook report showed a decrease in the global growth projections and cut in most developed and emerging economies growths estimates for 2018 and 2019. On other hand, Saudi output is projected to expand by 2.2% in 2018 and 2.4% in 2019.
Commenting on the report, His Excellency Mohammed Al Jadaan, Minister of Finance stataffirmed that the Fund's updated forecasts for the Saudi growth prove the effectiveness and positive impact of economic reforms and fiscal measures implemented by the government in accordance with the Fiscal Balance Program and 2030 Vvision. He addstated that the adopted public finance strategy will reduce the deficit rates, enhance sustainability, develop social spending habits, modernize infrastructure, stimulate the private sector, and develop services sector to support economic growth and employment in the medium term. " Although the oil production surge has boosted the economic growth estimates, the non-oil GDP growth continues to recover in the medium term", Mr. Al Jadaan said.
"Preliminary economic data indicate the Saudi progress", Minister of Finance saitated. GDP grew by 1.4% in first half of 2018 compared to a negative growth of 0.8% for the same period previous year, due to non-oil GDP recovery of 2.0% in 2018 compared to 0.1% previous year. Ministry of Finance forecasts the annual real GDP to reach 2.3% in 2019. Moreover, the structural economic reforms are expected to boost growth in the medium and long term.”