Saudi Arabia: 2023 Article IV Consultation-Press Release; Staff Report; and Informational Annex

The 2023 Article IV Consultation discusses that Saudi Arabia was the fastest growing G20 economy in 2022. The Saudi unemployment rate is at a historical low. Amid an increase in labor force participation, total unemployment dropped to 4.8 percent by end-2022—from 9 percent during Covid—reflecting both an increase in Saudi workers in the private sector and expatriate workers (mostly in the construction and agricultural sectors) rising back above pre-Covid levels. Non-oil gross domestic product growth momentum is expected to remain strong, as strong consumption spending and accelerated project implementation boost demand. Careful calibration of investment programs is needed to ensure catalytic effects and avoid crowding out the private sector. The industrial policy agenda should be supporting structural reform efforts, with guardrails put in place to minimize inefficiencies. Fully implementing the Green Initiative is necessary to help Saudi Arabia meet its net zero emissions target.