WASHINGTON (Sputnik) — The IMF chief praised Saudi Arabia’s economic-policy shift in response to falling oil prices as "very welcome."
"These efforts should continue over the medium-term including through further increases in energy prices which are still low by international standards, further revenue-raising measures including from the planned introduction of excises and the VAT [value-added tax] at the GCC [Gulf Cooperation Council] level, and further spending restraint," Lagarde stated.
Global oil prices plunged to a 13-year low of under $30 a barrel in January of this year from $115 in June 2014 due to a production-and-supply glut that has posed major challenges for energy companies and oil-producing countries.
So far in 2016, the Saudi government has introduced a series of reforms intended to diversify the oil-reliant country's economy.
