Saudi economy 'buoyant' but growth to slow this year, says IMF
Source: BI-ME with Reuters , Author: Posted by BI-ME staff
Posted: Wed May 30, 2012 6:12 pm

SAUDI ARABIA. Saudi Arabia's oil-dependent economy should remain "buoyant," although growth is forecast to slow this year given uncertainties over the euro zone debt crisis and a decline in crude prices, the International Monetary Fund said on Tuesday.

In its annual review of the world's top oil producer, the IMF said growth was likely to slow to 6%, down from 7.1% last year.

Inflation would likely remain at around 5%, although the IMF urged Saudi authorities to monitor it closely for signs of economic overheating, the Fund added.

High oil prices and increased state spending ignited a boom in the Saudi economy last year. But worries about the debt crisis in the euro zone and easing growth in China, a major importer of Saudi oil, are expected to weigh on Saudi growth.

The IMF said the outlook for the Saudi economy was subject to "some uncertainty" given the prospect of lower oil prices.

It said Saudi Arabia's fiscal and external surpluses should hit 17% and 27% of gross domestic product this year, respectively.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: September 29, 2014
UAE. Country assessment ranked at A3 by Coface; 5% growth projected for 2014; Business climate favourable with the new companies' law improving transparency; Debt profile improves, financing needs of GREs continue.
date:Posted: September 29, 2014
INTERNATIONAL. Stock market weakness, falling bond yields and the strong dollar, were some of the overall drivers, with geopolitical worries holding steady on the horizon.
date:Posted: September 29, 2014
UAE. PMI data indicates that MENA has still the same leaders, and same laggards, according to the latest Crédit Agricole report; UAE August 2014 PMI set a new record at 58.4; Saudi Arabia headline PMI in August hit its highest level in over 3 years.
UAE. Country assessment ranked at A3 by Coface; 5% growth projected for 2014; Business climate favourable with the new companies' law improving transparency; Debt profile improves, financing needs of GREs continue.
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