Aug 22 2012 |
more articles from
|
Saudi surplus may soar by 28 times
Rise will be a result of a sharp increase in oil revenue
The Gulf Kingdom, the largest Arab economy, projected a budget surplus of SR12 billion when it announced its highest ever expenditure of SR690 billion for 2012 and forecast revenue at SR702 billion.
In a study sent to Emirates 24/7, the Riyadh-based Jadwa Investments said it expected the actual surplus to swell to nearly SR306 billion, the second highest since the record balance of SR581 billion in 2008.
Jadwa expected the price of Saudi crude to average around $100 in 2012, more than 50 per cent above the $60 price assumed by Riyadh.
Strong oil prices and higher production will also boost Saudi Arabia's foreign assets to an all time high of around $758 billion at the end of 2012 from nearly $634 billion at the end of 2011, the report said.
Jadwa maintained its previous forecasts for Saudi Arabia's real GDP growth at 5.3 per cent this year but expected growth to fall back to 3.5 per cent in 2013.
A breakdown showed the government sector would grow by 6.7 pent while growth is forecast at around 5.1 per cent in the oil sector and 4.9 per cent in the non-hydrocarbon private sector.
GDP in current prices will likely rise by around 3.8 per cent to SR2.24 trillion in 2012 from SR2.16 trillion in 2011. Growth this year will be sharply below that in 2011, when nominal GDP shot up by 28 per cent.
© Emirates 24|7 2012
© Copyright Zawya. All Rights Reserved.
Post Your Comment