The Kingdom of Saudi Arabia remains one of the most recognized and highly reputable forces in the world. It has not only been a fairly large Kingdom but equally has been very respected whether through politics or economy. The Economy of the Kingdom has been quite stable and very remarkable since the time the Kingdom was established. The Saudis are trained business tycoons who know tactics that are not implied or followed by anyone around the world. It is because of their risks and challenges they are ever ready to face that they know how well to only let the economy forward, and not turn back move and head in the opposite direction.
In the beginning of the year 2016, Saudi government has increased the price of petrol in the local market by SR 0.30 per liter. The very calm Saudis now display frowns and marks on their temples. Apparently, the Kingdom of Saudi Arabia has been facing a possibility of inflation that will hinder and risk the economy stability. This was a confirmed statement was given by the International Monetary Fund (IMF) earlier this Monday. They have also shed light that if there are certain measures which would not be implemented, then the economy would prevent from overheating.
The IMF also said that the macroeconomic policies have to remain firm for signs that would help continue strong economic growth which is leading to increased inflationary pressures. What the IMF is wanting from Saudi Arabia is to notch 7.6% outside the oil sector, although the overall growth will be more moderate notching to 4.4 % and is fairly greater right now than that compared to last year. Currently, it is well settled to 4%, but the IMF has advised the Kingdom to get ready to pull up their socks if the price pressures rose suddenly.
It’s now very important that the Kingdom be prepared if the economy of the Kingdom has begun to fluctuate. Despite the fact that the change would not affect the Kingdom on a large scale, but the outcome sin business can never be justified hence it’s better to be on the safe side. As the IMF has suggested that the Kingdom begins preparing to increase the prices of not only fuel but other sectors and departments that the Kingdom is known particularly for.
Source: Al Arabiya
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