Latest IMF review focusses on Saudi Arabia and the Gulf region 25 April
- IMF encouraged by the efforts of Saudi Arabia and other Gulf Arab oil exporters to repair damage to their state finances as low crude prices slash export revenues
- cheap oil means a new reality for ME, N Africa region
- intense conflicts and low oil prices continue to weigh on the region's economic prospects
- oil exporters should focus on fiscal reforms and diversifying away from oil
- higher growth expected in oil importers but unemployment remains high
The comments come ahead of Saudi Arabia's announcement later today to unveil sweeping plans to ensure its economy can survive an era of cheap oil. The plans include spending cuts, tax rises and policies to expand the private sector.
Masood Ahmed, director of the IMF's Middle East and central Asia department says:
" I do see a number of countries action to address the budget deficit. That gives us comfort and encouragement.
Six months ago the IMF warned that budget reforms being considered by most of the ME's oil exporters were likely to be inadequate.
On Saudi's plans due to be revealed Ahmed says that from what has been revealed so far they appear "ambitious and comprehensive." The scale of the plan, he adds, "measures up to the challenge facing the economy."
Bloomberg has more on the Saudi proposals here