Published: February 6, 2012
Lagarde praises social progress but says challenges remain.
Job creation remains a “clear priority” for Saudi Arabia despite progress in social development and strong economic policies, according to the managing director of the IMF.
Following her visit to the kingdom last week and discussions with King Abdullah over economic developments, Christine Lagarde said: “The Saudi economy has navigated the global financial crisis well. Strong economic policies in the preceding years, together with prudent supervision of the financial sector, allowed the government to boost expenditure to support demand during the crisis, and to limit the direct impact on the financial system.”
The kingdom has made “significant progress” in social development, Lagarde added, and is now close to the G20 average for most indicators. “However, challenges still remain,” she said, highlighting access to housing and job creation.
“In my discussions, I commended the Saudi authorities for their progress in preserving financial stability despite the difficulties experienced in global financial markets, and we discussed the next steps in deepening financial markets to provide more support for growth,” she said. “Accelerating private-sector growth that can generate employment opportunities for Saudi nationals entering the labour market will be key.
“I have reiterated to the Saudi authorities the IMF’s readiness to help in areas of its expertise through constructive policy dialogue tailored to the needs and circumstances of the Saudi economy.”