Insights

The Saudi Economy in 2012

We expect another year of reasonable performance in 2012. Non-oil growth will be strong and inflation should ease. Lower oil production will cause total real economic growth to slow, and combined with lower prices, will reduce the budget and current account surpluses.

R Economic Research

R Market Research

Economic projections for 2011 revised up

We have revised some of our 2011 forecasts to take account of a recent flow of data that has generally been stronger than we had anticipated. Although risks to our outlook are on the downside for the remainder of the year given the uncertainty over events in the Eurozone, 2011 will be a year of strong performance for the Saudi economy.

Strong economic growth in the first half

New data show that economic growth in the first half of the year was strong, at 26.1 percent year-on-year in nominal terms, with oil by far the fastest growing sector, at 39.5 percent. Non-oil growth was 12.9 percent, with the non-oil private sector growing by 8.4 percent.