Oil Recovery to Determine Saudi Fiscal Trajectory, IMF Says

The International Monetary Fund (IMF) has stated that Saudi Arabia's fiscal and current account trajectories are primarily dependent on the recovery of oil prices and production. Despite the government's efforts to diversify the $1.2 trillion economy, the kingdom's finances remain heavily reliant on the oil sector. The IMF's assessment suggests that a rebound in oil prices and output would have the most significant impact on improving Saudi Arabia's fiscal and current account positions. This highlights the country's continued dependence on the volatile global oil market, even as it pursues economic diversification initiatives. The article underscores the challenges faced by Saudi Arabia in reducing its reliance on oil revenues and transitioning towards a more diversified economic structure. The IMF's analysis emphasizes the importance of this shift for the kingdom's long-term fiscal stability and economic resilience.