Saudi Arabia Economy

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Strong fundamentals underpinned by the hydrocarbons industry and increasing private sector activity point to sustained expansion for Saudi Arabia in 2014, but the economy is showing signs of slowing as the impact of the government’s stimulus package tapers off.
Growth in Saudi Arabia appears to be gathering pace, with a rise in oil production and continued strong consumer demand likely to boost GDP in the second half of the year. While inflationary pressures could arise as a result, analysts expect any price increases to be moderate over 2013.
Sound fiscal management and healthy reserves have set Saudi Arabia on track for an upgrade of its key ratings, improving the Kingdom’s investment and growth prospects.
The Saudi Arabian economy recorded another solid year of expansion in 2012, sustained by its energy sector and a steady rise in state spending. While growth may moderate in 2013, a number of sectors, including construction and banking, look set to continue expanding.
Several of Saudi Arabia’s major cities – Jeddah, Riyadh and Mecca – and surrounding areas will benefit from plans to roll out public transport and construction projects over the next five years as part of a government drive to boost growth and address the Kingdom’s social needs.
Saudi Arabia’s economy, already robust after posting growth of 6.8% last year, seems set for a period of sustained expansion, with state-backed investments and higher-than-projected hydrocarbons earnings contributing to the Kingdom’s strong performance.

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