Riyadh has launched a 2030 reform program intended to reduce the Gulf kingdom's dependence on black gold, which is already having a positive impact: more and more Saudis have joined the labor market as a result, according to the IMF.
The international organization hails "solid growth, controlled inflation and a resilient financial sector".
“Overall growth was maintained in 2021 at 3.2%, thanks in particular to a rebound in the non-oil sector, supported by a rising employment rate for Saudis – especially women – and should increase significantly to 7, 6% in 2022", notes the institution in its report.
While inflation around the world is sometimes reaching unprecedented levels, Saudi Arabia should succeed in bringing it down to 2.8% in 2022, from 3.1 in 2021.
"The increase in the price of oil and the increase in the production of hydrocarbons has made it possible to record a surplus of 5.3% of GDP", notes the IMF, while the barrel is still trading around 100 dollars, a price inflated by the Russian invasion of Ukraine and the post-Covid resumption of activity.
On Sunday, the oil giant Aramco, the main source of revenue for the Saudi state, announced a record net profit of 48.4 billion dollars in the second quarter, an increase of 90% year on year.
In early August, Saudi Arabia announced a rare budget surplus in the second quarter of 2022, as the largest Arab economy had failed to balance its books since the 2014 oil price rout.
The Saudi kingdom has been seeking to open up and diversify its oil-dependent economy, particularly since the appointment of Mohammed bin Salman as crown prince in 2017, who has since become de facto ruler.
© 2022 AFP