By Innovation-sa on August 29, 2018 in News

The International Monetary Fund (IMF) applauded the Saudi government for the progress made till date in pursuing its reform agenda and emphasised that stronger oil price should not slow momentum.

A senior official at the Washington based company said that the Saudi Arabian economy is moving ahead with economic reforms and growth in its non-oil sector is expected to gain momentum despite any delay in the proposed sale of shares in Saudi Aramco.

According to the IMF report based on annual consultations, Saudi Arabia’s gross domestic product (GDP) is expected to increase 1.9 percent this year, in contrast to a GDP fall of 0.9 percent last year. Non-oil GDP growth is also expected to rise to 2.3 percent this year from 1.1 percent last year.

The report anticipated the strengthening of the Kingdom’s finances because of higher oil prices and non-oil revenues. However, it urged the government the need to maintain spending at a sustainable level in different oil price environments so that the Saudi budget will not be exposed, should there be an unexpected drop in oil prices.