IMF warns Saudi Arabia of inflation

The International Monetary Fund has warned Saudi Arabia of a possible inflation risk, urging the kingdom to take preemptive measures against the potential risk.

In a regular assessment of the oil-rich countryâ„¢s economic health, the IMF on Monday urged Riyadh to remain vigilant against future oil price uncertainty.

The kingdomâ„¢s overall growth is expected to be moderate partly because of a probable fall in oil output in 2013 compared to the year before.

This comes as the inflation in the country has risen to around 4 percent.

Å“If inflation were to pick up more than expected or evidence of supply bottlenecks were to emerge, then either macro-prudential policy would need to be adjusted or capital spending projects slowed,” the IMF said in a statement at the end of a staff mission to Saudi Arabia for the review.

The IMF also called on Riyadh to further develop Å“fiscal tools, including those dealing with oil price uncertainty.”


This article originally appeared on : Press TV