IMF Praises Saudi Economy's Resilience Amid Middle East Conflict

The International Monetary Fund (IMF) has hailed Saudi Arabia's economy as 'resilient' in the face of Middle East war, despite disruptions to shipping through the Hormuz Strait.

In a statement released on July 29, IMF economists praised the Gulf kingdom's strong macroeconomic fundamentals and diversified oil and logistics infrastructure.

The IMF noted that US and Israeli strikes on Iran in February had led to retaliatory attacks on Saudi Arabia and its neighbors, disrupting activity, curtailed trade, including oil exports, and dented confidence.

However, the institution predicted a recovery once maritime traffic through the strait gradually returns. The outlook hinges critically on the evolution of the conflict, with risks to the downside.