imf saudi arabia can relax fiscal controls ‘from time to time’
Last Updated : GMT 09:07:40
Egypt Today, egypt today
Egypt Today, egypt today
Last Updated : GMT 09:07:40
Egypt Today, egypt today

IMF: Saudi Arabia can relax fiscal controls ‘from time to time’

Egypt Today, egypt today

Egypt Today, egypt today IMF: Saudi Arabia can relax fiscal controls ‘from time to time’

Jihad Azour, the International Monetary Fund’s regional director
Dubai - Arab Today

The International Monetary Fund (IMF) believes that Saudi Arabia can afford to relax its tough fiscal stance “from time to time,” like in the decision last week to reinstate benefits to some government workers.
Jihad Azour, the new IMF director for the Middle East and Central Asia, told reporters in Dubai at the unveiling of the fund’s regional economic outlook for the Middle East that he believed the Saudi commitment to fiscal balance was still intact after the benefits move.
“From time to time, you can allow some fine-tuning in a program this big. The government has confirmed that a balanced budget is still the target for 2020. I think you can allow some slippage in a program of such magnitude,” Azour said.
Saudi Arabia launched a strategy to transform the economy of the Kingdom in its Vision 2030 plan, which aims to reduce its dependency on oil revenue and increase private-sector growth.
However, Azour warned that there was a danger of “reform fatigue” in the strategy. “One of the risks is that fatigue sets in. It is an ambitious program of reform and diversification, but the government needs to prioritize its targets and implement them,” he added.
The IMF also believes that economic growth will be weaker this year. It recently downgraded growth to 0.4 percent this year and 1.3 percent in 2018. A team of IMF analysts is currently in the Kingdom working on a new assessment, Azour said.
But the outlook for Saudi Arabia, and the wider Middle East and North Africa (MENA) region, is improving. “Things are looking up and external conditions have improved. The reforms that have been undertaken in the region are beginning to bear some fruit,” Azour said.
The improved economic outlook was because of higher growth in the rest of the world and rising commodity prices, though the IMF does not believe there is much upside in the crude oil price. It sees $55 per barrel as the average price this year and the next. The benchmark crude Brent traded at around $52 a barrel on Monday, while the Kingdom’s 2017 budget is calculated on a $50 projection.
For the region as a whole, the IMF said: “The global outlook is consistent with somewhat higher commodity prices and stronger global trade, which will support economic activity in the Middle East and Pakistan; stronger growth in China will also support anticipated investment in some countries.”
The fund said that growth in the non-oil economies of the region would continue, but, because of the low oil prices, “further sustained fiscal adjustment remains critical,” which would affect the overall economic growth. This is forecast to fall to 2.6 percent across the region and Pakistan this year, rising to 3.4 percent in 2018. Oil exporters are expected to show 1.9 percent growth this year and 2.9 percent next year.
On the forthcoming Saudi privatization plan, which could be worth up to $300 billion at the top end of estimates, Azour said: “Whatever can be done to improve private sector participation is good, so I think all these initiatives are welcome. They are ambitious plans for reform and diversification.”
He added that high levels of debt were an issue facing the region, especially for the oil exporters. In the UAE, the region’s second-biggest economy, the IMF estimates gross public debt (excluding government-related entities) at 19.3 percent of gross domestic product (GDP).
An IMF team is working on a new assessment of debt in Dubai, which is believed to be significantly higher than the UAE average and will report later this month. But Dubai’s growth is higher than most other parts of the region, at about 4 percent projected for 2017.

Source: Arab News

egypttoday
egypttoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

imf saudi arabia can relax fiscal controls ‘from time to time’ imf saudi arabia can relax fiscal controls ‘from time to time’



GMT 23:28 2011 Friday ,25 November

Moenchengladbach go top in Germany

GMT 07:59 2017 Saturday ,09 December

Yemeni legitimacy troops managed to achieve advance

GMT 11:10 2016 Saturday ,31 December

Thomas scores career-high 52

GMT 01:16 2012 Saturday ,08 September

Counting down the days until school starts

GMT 03:12 2017 Thursday ,13 April

Resident rescued from Oman house fire

GMT 16:53 2011 Thursday ,12 May

Queen Elizabeth\'s is second-longest reign

GMT 06:54 2018 Sunday ,14 January

Trump language on Africa unacceptable, racist

GMT 15:34 2018 Monday ,08 January

ACWA Power plans three solar projects in Egypt

GMT 15:10 2011 Sunday ,05 June

Eagleburger, US hails top diplomat dead at 80

GMT 13:39 2012 Monday ,19 November

\'Zewail City claims not legitimate\'

GMT 05:32 2012 Wednesday ,13 June

China to open more of Great Wall

GMT 15:04 2017 Wednesday ,18 January

Michel Houellebecq's mother didn't love him

GMT 13:07 2017 Monday ,25 September

CAPRICORN (December22nd-January20th)

GMT 10:58 2017 Tuesday ,31 October

Seven dead as Israel blows up tunnel from Gaza

GMT 10:23 2017 Monday ,13 February

Race for kilowatts empties Bosnian lake

GMT 14:03 2017 Thursday ,08 June

Agricultural lands one national security

GMT 07:53 2014 Thursday ,25 December

Clashes reported in 3 Turkish universities

GMT 11:27 2013 Monday ,05 August

Islamic heritage exhibition? opens in Iraq

GMT 13:42 2012 Tuesday ,03 July

Diversity, Minus the Tokenism

GMT 02:12 2012 Friday ,27 January

Tod’s No_Code Collection

GMT 17:58 2011 Wednesday ,10 August

Ghanaian Barusso attacked by Roma fans
 
 Egypt Today Facebook,egypt today facebook  Egypt Today Twitter,egypt today twitter Egypt Today Rss,egypt today rss  Egypt Today Youtube,egypt today youtube  Egypt Today Youtube,egypt today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday