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
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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: August 4, 2015
UAE. July data suggested that the UAE's non-oil private sector regained some of the growth momentum that was lost at the end of the second quarter; Output and new orders both rose at sharper rates, contributing to a robust overall improvement in business conditions.
date:Posted: August 4, 2015
EGYPT. Latest data painted a bleak picture; Business conditions worsened amid declines in output, new orders and employment, although the respective rates of contraction were only slight.
date:Posted: August 4, 2015
SAUDI ARABIA. Stronger growth of the sector as a whole was mainly driven by sharper expansions in both output and new orders, while purchasing activity also rose more quickly; However, data for employment bucked the general trend, as the rate of hiring eased to a 14-month low.
SAUDI ARABIA. Office and residential sectors are positioned for further rental growth during remainder of 2015; Hotel and retail sectors appear closer to the peak; Residential market remains mixed, with apartments seeing continued rental growth while villa rents have declined.
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