São Paulo – A decline in oil industry Gross Domestic Product (GDP) in 2024 and weaker revenue from the commodity’s exploration should not impact growth and projects in Saudi Arabia in years to come, an International Monetary Fund (IMF) analysis made public this Monday (4) shows. In the document, the IMF Executive Board forecasts 3.5% growth in Saudi non-oil GDP in the medium term, and national GDP to be up 3.6% this year and 3.9% next year.
According to the IMF, Saudi Arabia has demonstrated resilience to external shocks “as its economic diversification advances,” in a reference to the Vision 2030 plan to invest in different sectors, diversifying the economy away from oil. The IMF lists domestic consumption, government projects, and the performance of retail, construction, and hospitality as growth drivers.
“Unemployment among Saudi nationals hit a record low, with youth and female unemployment rates halved over four years. The current account shifted to a 0.5% of GDP deficit from a 2.9% of GDP surplus in 2023, increasingly financed by external borrowing and reduced foreign asset accumulation,” the IMF mentions, bringing up improvements – a reduction in unemployment – as well as points of attention, including the current account deficit, which should broaden to 2.6% this year and 3% next year.
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Translated by Gabriel Pomerancblum
