The 2021 budget aims to substantially reduce the fiscal deficit. To secure the recovery and spur stronger growth, policymakers need toĬarefully manage the exit from the remaining COVID-related support andĬontinue the longer-term reform agenda under Vision 2030.įiscal policy-balancing short-term support and medium-term Months and is projected at 2.8 percent in 2021 (3.4 percent in 2020). Increased in July 2020 with the higher VAT rate but has eased in recent Increased to 15.4 percent in 2020Q2 before declining to 12.6 percent in The unemployment rate for Saudi nationals Real oil GDP growth is projectedĪt -0.5 percent in 2021 (-6.7 percent in 2020) given production levelsĪgreed by OPEC+ and 6.8 percent in 2022 as the OPEC+ agreement is Is projected at 3.9 percent in 2021 and 3.6 percent in 2022 compared toĪ contraction of 2.3 percent in 2020. Indicators suggest the recovery has continued in 2021. GDP growth rebounded in the second half of 2020 and high-frequency Growth is projected by IMF staff at 2.1 percent this year and 4.8 The economic recovery is ongoing, the unemployment rate has fallen, and Services, reforms to increase labor market mobility, and strong fiscal andįinancial policy buffers all equipped the economy to manage the crisis. Governance, the growing digitalization of government and financial Reforms under Vision 2030 have played a key role in helping the economyĮfforts to establish a robust structure of interagency coordination and Those sectors where the effects of the crisis are longer-lasting. The support programs have been ended and others adjusted to target only Pandemic on businesses and Saudi workers. Introduced by the government and SAMA helped cushion the impact of the Fiscal, financial, and employment support programs Strict early containment and health mitigation measures limited cases andįatalities and the vaccination program has advanced well in recent months. The authorities responded quickly and decisively to the COVID-19 crisis. Welcome and specific plans should follow as soon as possible. The commitment to reduce greenhouse gases (GHGs) is In trying to grow and diversify theĮconomy, the public sector will need to be careful not to crowd out the Market reforms have resulted in a significant increase in female laborįorce participation and should enhance job mobility for expatriates (SAMA) and banks have provided breathing space to small and medium-sizeĮnterprises (SMEs) and should be withdrawn carefully. Private sector support programs implemented by the Saudi Central Bank ThisĬould be achieved by increasing spending on the social safety net. The medium-term, although a slower pace of adjustment could beĬonsidered this year to provide further support to the recovery. Government’s policies should deliver needed fiscal consolidation over The authorities responded quickly and decisively to the COVID-19 crisisĪnd the economic recovery that is underway is expected to continue. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. The authorities have consented to the publication of this statement. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF's Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments. A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country.
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