Leading indicators for the first quarter of 2011 show a strengthening in economic activity due to an increase in oil output and more government spending, the IMF said in a statement at the end of annual consultations with Saudi Arabian authorities.

Inflation would likely rise to about 6 percent, the IMF said without elaborating.

Government data on May 14 showed annual inflation rose to 4.8 percent in April due to higher food and transport costs.

“The economy is poised for continued robust growth,” the IMF said.

Its statement did not mention the effects, if any, on the Saudi economy from mass protests throughout the Middle East and North Africa this year.

Saudi Arabia has managed to stave off the unrest that has hit other countries in the region.

“Oil production is increasing further to compensate for lower output elsewhere in the region,” the IMF said, adding that both fiscal and external balances in Saudi Arabia are likely to register strong surpluses amid an increase in oil production.