Saudi Arabia: 2019 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, September 9, 2019
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- Saudi Arabia: 2019 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: September 9, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513513447.002
Summary findings
- Reforms are starting to yield positive results.
- Oil prices and production have been volatile, and uncertainties in the global oil market continue.
- Promoting non-oil growth and creating jobs for Saudi nationals remain key challenges.
- Non-oil growth is expected to strengthen further this year and over the medium term.
- Risks to the growth outlook are broadly balanced.
Fiscal position and risks
- The fiscal deficit declined in 2018.
- Higher government spending has increased medium-term fiscal vulnerabilities to a decline in oil prices.
- Fiscal consolidation is needed to reduce these vulnerabilities.
- The fiscal framework should be further strengthened to help reduce the procyclicality of government spending.
Structural and labor market issues
- Reforms to improve the business environment are proceeding.
- These reforms need to be complemented by efforts to increase the cost competitiveness of Saudi labor.
- Government support to develop sectors of the economy should:
- crowd in the private sector,
- be timebound, and
- be linked to performance.
Policy recommendations (implicit in staff analysis)
- Pursue fiscal consolidation to lower medium-term vulnerabilities associated with oil-price declines.
- Strengthen the fiscal framework to reduce procyclical spending behavior.
- Continue business-environment reforms and implement measures to enhance the cost competitiveness of Saudi labor.
- Design government sector-development support to be timebound, performance-linked, and aimed at mobilizing private-sector participation.
Key statistics and publication metadata
- Pages: 86
- Volume: 2019
- Issue: 290
- Series: Country Report No. 2019/290
- DOI: https://doi.org/10.5089/9781513513447.002
- Stock No: 1SAUEA2019001
- ISBN: 9781513513447
- ISSN: 1934-7685
- Publication date on landing page: September 9, 2019
International Monetary Fund. Middle East and Central Asia Dept. "Saudi Arabia: 2019 Article IV Consultation-Press Release; and Staff Report", IMF Staff Country Reports 2019, 290 (2019).
Content in this bundle
- 1sauea2019001