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IMF experts welcome progress of economic reforms
SOURCE: Dubai – Noha Yassin
The International Monetary Fund (IMF) has advised Saudi Arabia to increase its value-added tax (VAT) from 10% to 10%, improving its fiscal position in the face of falling oil prices.
In its annual report on the Kingdom, the Fund welcomed the progress made by the Saudi government in achieving economic and social reforms, including the introduction of VAT and energy price reform.
The IMF's praise for the progress made in implementing the government's economic agenda was part of Vision 2030 2020, with recommendations for further reforms and prudent economic and financial policies.
The IMF released its report on Saudi Arabia's economic performance, conducted last July, which was positive for most of the key economic indicators supported by the reforms implemented by the government.
In terms of growth, the IMF expects GDP growth to rise to 3 percent in 2020, after a limited decline of 1.9 percent this year.
The budget deficit is expected to decline to 5.1% in 2020, after 6.5% in 2019.
In terms of revenue, the IMF forecast 33.2 percent of GDP this year and next, compared to 30.9 percent in 2018.
The report also reviewed reforms aimed at revitalizing the private sector, including the reform of legal frameworks related to the business environment and industrial policies, as well as financial market reforms, which led to the revival of the non-oil economy, which is expected to grow by 2.9% this year.
The Fund also welcomed tax reforms, including the introduction of VAT and the reform of energy prices.
In its report, the IMF has clearly underscored the reforms that are beginning to bear fruit, while noting that volatility in world oil prices and risks to the global economy would continue to pose a risk to the Saudi economy. .
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