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19-01-13

Saudi GDP to grow 4.2% in 2013: Jadwa

(MENAFN) A new report by Jadwa Investments predicted Saudi Arabia's gross domestic product to cool down in 2013 compared from 2012, Arabia Business reported. Jadwa said that lower oil production will cause total real economic growth to slow, and combined with lower oil prices, will reduce the budget and current account surpluses. The report said the kingdom's economic growth was likely to slow to 4.2 percent in 2013, down from 6.8 percent in 2012. Nevertheless, this year's growth will remain solid, supported by non-oil strong growth and a slight slowdown in inflation rate, the report said. This will be supported mainly by high government spending will remain the engine of the non-oil economy, the report added. The report said another budget surplus was expected in 2013 and the government resort to its foreign assets, which stood at around USD634.8 billion at the end of November 2012, to finance its expenditure plans in the event of any shortfall in revenues. Inflation is forecast to moderate to an annual average of 4.3 percent in 2013, supported by declining rental inflation, as more properties enter the market. Jadwa said a significant slowdown in global growth and geopolitical tensions constituted key risks to its forecast.

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