Saudi Press: IMF Raises its Growth Forecast for Saudi Economy to 2.9% during Current Year
Saudi newspapers highlighted in their editorials today a number of issues at local, regional and international arenas.
Al-Riyadh newspaper reported in its editorial that reducing the health and economic impacts resulting from the Coronavirus pandemic is a collaborative work between the state and society. Moreover, the members of the society have an important task, which is adhering to the precautionary measures, to support the government’s efforts aiming to combat the pandemic.
The newspaper added that, unfortunately, there is a segment of the society whom did not realize the danger of the COVID-19 pandemic, as they continue with their irresponsible behavior, represented in not wearing face masks, not maintaining physical distancing and continuing with large family gatherings. This thing is reflected on the epidemiological situation and the increase of daily cases.
Therefore, commitment to preventive measures and making them a part of daily life is the only option.
Al-Eqtisadiah newspaper reported in its editorial that despite the large challenges and the tremendous economic impacts of the COVID-19 pandemic, the private sector’s contribution to Saudi Arabia’s GDP at constant prices rose in 2020 to 41.1%, compared to 40.7% in 2019, noting that the private sector’s share was about 39.3% in 2015 before the launch of the Kingdom's Vision 2030.
These numbers confirm the success of the Saudi plans being implemented since the launch of Vision 2030 to stimulate the private sector. These important steps and plans resulted in strengthening the society, as they enabled the government to implement all plans to protect society from the pandemic, including the complete lockdown, but nevertheless the private sector achieved a jump in levels of GDP.
According to the analysis of the reports unit in Al-Eqtisadiah newspaper, based on official data, the share of the private sector in the Saudi economy in 2020 is the highest since 2010. Economic figures show that Saudi GDP at constant prices decreased by 4.1% during the past year. This decline is due to a decline in the oil sector by about 6.7%, and a decline in the non-oil sector by a lower rate of 2.3%. From these results, we realize that the huge efforts that were exerted before the pandemic resulted in reducing the great connection between the Saudi economy and fluctuations in oil prices.
In a similar context, Okaz newspaper reported in its editorial that the latest report by International Monetary Fund (IMF) raised its growth forecast for Saudi economy to 2.9% instead of 2.6% during the current year, and by 4% next year, as this affirms strength of the Saudi economy in overcoming challenges, while moving towards achieving Vision 2030.
The newspaper further said that Saudi Arabia was able to significantly reduce any negative repercussions of the pandemic, while safeguarding the private sector. The thing was affirmed by the General Authority for Statistics (GASTAT), as 74,000 Saudis joined the job market last year, in light of the suffering of developed countries from high unemployment rates.