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: February 28, 2017
UAE. Just as challenges have come to characterize the region's business landscape, so too have a wealth of technological advances that are rapidly changing the regional retail sector.
date:Posted: February 28, 2017
LEBANON. Full-year results show continuing stagnation; Political breakthrough insufficient to generate sustained demand, according to Byblos Bank Real Estate Demand Index.
date:Posted: February 28, 2017
UAE. Middle East utility companies have yet to realize the upsides from global mergers and acquisitions; Privatization plans specifically in Saudi Arabia in power and water offer huge opportunities for international investors over the coming years.
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