Saudi economy expected to see ‘gradual’ recovery in H2 2020: IMF official

Saudi Arabia’s economy is expected to see a “gradual” recovery in the second half of the year, following the resumption of all economic and commercial activities, and the end of closures, Asharq Al-Awsat newspaper reported, citing the International Monetary Fund (IMF) envoy to Saudi Arabia, Tim Callen.

The Kingdom has adopted a strong package of support measures for the economy, which undoubtedly helped mitigate the economic repercussions resulting from the coronavirus.

Moreover, some sectors are projected to see better performance. The strength of recovery will depend on people’s regained confidence in carrying out economic activity and constant vigilance about the virus to ensure that new cases are well contained.

“The Kingdom will need to consider more measures to encourage private sector companies to invest, employ Saudis and grow,” Callen explained.

In the short-term, the Kingdom’s challenge is to continue supporting the economy and the health care sector as the battle against the coronavirus continues. Meanwhile, the long-term challenge is to obtain private sector-led growth and create jobs for Saudis.