The International Monetary Fund (IMF) has given a vote of confidence to the Kingdom’s economy, following a recovery in oil output, coupled with the continuation of the GCC-funded projects and rising refinery and aluminium production capacity.

“Overall growth is projected at 3.2 per cent in 2018, with a recovery in oil production, continuation of GCC-funded projects, and rising refinery and aluminium production capacity,” said Bikas Joshi who led the IMF’s delegation for Article IV consultation with the Kingdom said in a statement on Wednesday. The IMF has also forecast the fiscal deficit to fall to 11pc of the gross domestic product in 2018 on the back of subdued Inflation and higher oil prices — increasing hydrocarbon revenues by 15pc.

“Improving access to financing for small and medium enterprises and further reforming the labour market would help further diversify the economy and make the non-hydrocarbon sector more resilient,” he said.

The mission will submit a report to IMF management and Executive Board, which is tentatively scheduled to discuss the Article IV Consultation in July 2018.