Saudi Arabia has been one of the best performing G20 economies in recent years, and has supported the global economy through its stabilizing role in the global oil market, the International Monetary Fund (IMF) was quoted as saying in a report.
Saudi Arabia has also provided generous financial support to countries in the Middle East region, IMF said in a statement after its executive board concluded the Article IV consultation with the kingdom, according to the Arab News report.
IMF executive directors, however, stated that implementation of labour market policies to boost Saudi employment should be carefully coordinated with macroeconomic policies, it said.
The Saudi population is young and increasingly well-educated, and as it continues to enter into its working-age years, there is a tremendous opportunity to boost growth and raise living standards further, the report said.
IMF said Saudi economy grew by 5.1 per cent in 2012, benefitting from high oil prices and output, strong private sector growth, and government spending. Inflation has risen over the past year to 3.8 per cent in May 2013, driven by higher food prices and housing costs.
Looking ahead, growth is projected to slow to 4 percent in 2013, IMF said.