IMF: Saudi unemployment up, economy stagnant despite reforms

DUBAI, United Arab Emirates – The International Monetary Fund says Saudi Arabia’s economic growth is expected to remain stagnant this year as unemployment rises among Saudi nationals, despite major efforts at overhauling the economy and diversifying revenue streams following a sharp decline in oil prices three years ago.

The IMF says non-oil growth is projected to dip below 2 per cent in 2017 while overall economic growth is expected to be close to zero. The kingdom announced recently that unemployment had risen to 12.8 per cent.

Saudis struggling to find work will also have to contend with government plans to introduce a value-added tax next year. In line with IMF recommendations, the kingdom has already put in place a sin tax on tobacco, soft drinks and energy drinks, and lifted some energy subsidies.