Bank of America stays long on Tunisian government bonds thanks to IMF optimism
RIYADH: The International Monetary Fund (IMF) projection that the Saudi economy will grow by nearly 5% next year, due to the Kingdom’s decisive handling of the coronavirus pandemic, has been welcomed by economic experts.
“The authorities reacted swiftly and decisively to the COVID-19 crisis. The reforms carried out under Vision 2030 have played a key role in helping the economy overcome the pandemic, ”the fund said.
The IMF has estimated that Saudi gross domestic product (GDP) will grow by 2.1% in 2021 and 4.8% in 2022, adding that “the economic recovery is underway, the unemployment rate has fallen and inflation has fallen. consumer prices are easing ”.
Fadhel Al-Buainain, member of the Shoura Council, said the IMF statement reflected the success the Kingdom has achieved through the economic reforms of Vision 2030 and reiterated the Saudi government’s success in handling the coronavirus crisis. in terms of health and economic growth.
Al-Buainain, who is also a board member of the Saudi Financial Association, called the achievement laudable, especially in light of the fact that the global economic repercussions were enormous. Government support during the crisis, such as maintaining the liquidity of the banking sector, helped provide low-cost financing for the private sector, he said.
“Vision 2030 has increased the employment rates of women, thanks to government laws supporting women and encouraging their participation and engagement in the labor market. Government support for the business sector has also protected jobs, ”he said.
Vision 2030 increased the employment rates of women, thanks to government laws supporting women and encouraging their participation and engagement in the labor market.
Fadhel Al-Buainain, member of the Saudi Shura Council
“Expectations have shown that the non-oil sector will grow to 3.9% in 2021 and 3.6% next year. This proves the efficiency and effectiveness of economic reforms. Economic reforms will continue to bring positive and good results, as noted by the IMF statement, which is neutral testimony that the reforms are effective and instrumental in achieving economic and financial sustainability, ”he said.
Growth in the crucial non-oil sector is expected to return to positive territory of 3.9 percent this year and 3.6 percent next year, the IMF said. At the same time, the oil sector’s GDP is also expected to be even larger next year, growing by 6.8%, as production cuts by the OPEC + producer alliance end and many experts predict a spike in crude prices.
Regarding the participation of Saudi women in the labor market, the statement welcomed the broad measures taken by the Saudi government, as estimates showed that the participation rate of Saudi women in the total workforce has increased. 13 percentage points to exceed 33% in the past two years. .
Mohammed Al-Jadaan, Minister of Finance, said the declaration reaffirmed the Kingdom’s government’s success in achieving positive results and tangible successes in a difficult year for the whole world.
“Such results have been achieved despite the impact of the COVID-19 pandemic, fluctuations in oil prices, sharp economic fluctuations, declining global demand, declining growth and other challenges facing the Saudi government was confronted, ”he said.