The International Monetary Fund (IMF) on Thursday (October 5th) advised Saudi Arabia not to rush reforms and price hikes as the kingdom looks to overhaul its economy to cope with low crude prices, AFP reported.
While the IMF praised Saudi Arabia's intense reform programme, which aims to boost non-oil revenues and curb government spending, it recommended pacing implementation to avoid inflicting too much damage on growth.
"If fiscal consolidation proceeds too rapidly, it would adversely affect growth" and involve large hikes in prices of fuel and power, a new report said.
Faced with a sharp decline in oil income following the 2014 price crash, Riyadh has posted budget deficits totalling $200 billion in the past three years, and is forecast to register a $53-billion shortfall this year.
The kingdom's economy -- the largest in the Arab world -- also has contracted in the first two quarters of the year due to lower crude prices and production.
Authorities have launched a major economic reform programme, dubbed Vision 2030, to reduce dependency on oil and introduced austerity measures.
