The Saudi economy is proving resilient amid the Middle East conflict, said the IMF this week as it wrapped up its Article IV mission. Although the war is weighing on growth and non-oil activity, it still expects the economy to grow by around 2% if shipping through the Strait of Hormuz normalizes in the coming months.
The 7mn b/d East-West pipeline is providing an economic lifeline, with oil export revenues surging in the first month of the war despite lower volumes. The IMF also points to the impact of Vision 2030 reforms in strengthening institutions and improving policymaking, as having helped with resilience. However it warns that a prolonged conflict would risk eroding investor confidence and could weaken medium-term growth prospects. (CONTINUED - 120 WORDS)