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: July 22, 2014
UAE. The escalation of turmoil in the world is yet to play a role for the market, but be warned: everything economic has a delayed reaction of nine to twelve month. If the present state of alertness continues through the summer you can bet on higher energy prices having a serious impact.
date:Posted: July 21, 2014
UAE. The human factor drives the innovative capacity; The GII 2014 surveys 143 economies around the world, using 81 indicators-to gauge both their innovation capabilities and measurable results.
date:Posted: July 21, 2014
UAE. GCC IPO volume up 67% in H1 2014; H1 2014 saw the most capital raised and highest volume of IPOs since 2008; "The IPO market is very strong across MENA, particularly among the GCC countries."
UAE. The escalation of turmoil in the world is yet to play a role for the market, but be warned: everything economic has a delayed reaction of nine to twelve month. If the present state of alertness continues through the summer you can bet on higher energy prices having a serious impact.
dhgate