IMF Concludes 2009 Article IV
Consultation with Saudi Arabia
(A Summary)
 Saudi Arabia's confronts the current global crisis with stronger fundamentals compared with previous downturns. Because of the consolidations of Saudi Arabia's economic position (macroeconomic stability, a sound financial sector and structural reforms), Saudi Arabia was ranked first among Arab countries for four consecutive years and 16th globally by the latest World Bank's Doing Business Report. In 2008, real GDP grew by 4.4 percent (4.3 percent in non-oil sector). Inflation rate has declined to 5.2 percent y/y in April 2009 after reaching 11.1 percent in July y/y 2008. Domestic debt fell to 13.5 percent of GDP. FDI inflows remained high at about $23 billion. Broad money and private sector credit grew by 18 percent and 27 percent, respectively.  The outlook remains broadly positive. Non-oil GDP growth is projected to grow by 3.3 percent in 2009, but lower oil production would lead to a contraction in overall GDP by 1 percent for the first time since 1999. Inflation rate is expected to retreat to about 4.5 percent.

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Source: International Monetary Fund (link)