The International Monetary Fund (IMF) staff say that the Saudi economy is benefitting from remarkable growth, spurred by a strong pick-up in private investment and ongoing reform implementation. Their views were included in the IMF's official concluding statement that was issued at the end of their visit for an Article IV Consultation with the Kingdom's government for 2023. The IMF officials commended the continued implementation of the Saudi Vision 2030 agenda towards a productive and sustainable economy, noting remarkable progress in digitalization, the regulatory and business environment, female labor force participation, and higher private sector investment. The IMF staff emphasized that implementation of Saudi Arabia's impressive structural reform agenda will help generate strong, inclusive, and more sustainable growth. Saudi Arabia had the fastest-growing G20 economy in 2022, the IMF experts said, while Saudi unemployment rates are at historical lows. Female participation in the labor force reached 36 percent in 2022, exceeding the target under Vision 2030, they noted. Despite the booming economy, the IMF officials indicated that inflation remains low and is expected to be contained in 2023, and that non-oil growth momentum will remain strong. Regarding the Saudi current account, they indicated that it improved to a 10-year high surplus in 2022, and said reserves are expected to stabilize at comfortable levels. The IMF experts' statement indicated that Saudi Arabia's public debt is low and sustainable, with fiscal space available to address potential economic headwinds. They also emphasized that the exchange rate peg to the US dollar remains appropriate given the current economic structure. Additionally, the IMF staff emphasized that the Saudi banking system remains on a strong footing and that there were almost no direct spillovers from the collapse of Credit Suisse and several mid-sized US banks. They also highlighted that the strong performance of Saudi banks is underpinned by ongoing efforts to modernize the regulatory and supervisory frameworks. The IMF experts also welcomed Saudi Arabia's ongoing plans to: increase renewable energy; generate savings through efficiency programs; deploy carbon capture, usage, and storage technologies; and become the world's leading hydrogen exporter. — SPA
