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Article

Country Focus: Saudi Arabia

Author(s):
International Monetary Fund. External Relations Dept.
Published Date:
December 2008
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Since the start of the oil boom in 2003, Saudi Arabia has achieved strong growth, aided by high oil revenues and a rapid expansion of the non-oil private sector. While inflationary pressures are easing, the global financial crisis poses new risks.

Since 2003, growth has averaged 4.3 percent, with a significant contribution from the non-oil sector.

(percent change)

… through the accumulation of net foreign assets and the reduction of public debt.

(percent of GDP)

The global economic slowdown has started to ease inflationary pressures.

(year-on-year, percent change)

Sources: Saudi Arabian authorities; and IMF staff estimates.

Rising oil revenues through mid-2008 have strengthened the fiscal and external positions …

(percent of GDP)

Oil wealth is being invested over the medium term to expand the non-oil sector and boost oil production capacity to support global oil market stability.

(percent of total investment, 2007-14)

The key short-term challenge is to minimize the fallout from the global financial crisis, which has so far had a limited effect on the domestic banking system.

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