Riyadh – Mubasher: Saudi Arabia’s economic growth is likely to stand at around 2.5% during 2019 and 2020, the Arab Monetary Fund (AMF) said on Wednesday.
Oil output is expected to decrease during the first half of 2019, in line with a production cut deal between the Organization of Petroleum Exporting Countries (OPEC) and its allies, according to AMF’s Arab Economic Outlook report for April.
The GCC nation’s oil gross domestic product (GDP) is also forecast to retreat during 2019 and 2020, as a result of the planned oil output reduction, AMF indicated.
On the other hand, revenues from Saudi Arabia's non-oil sector are projected to increase by 9% in 2019 and by 3% in 2020; this will support the government’s expenditures on developmental and investment projects.
Additionally, the kingdom’s inflation is expected to grow 1% in 2019 and 1.6% in 2020, the report noted.
Saudi Arabia’s budget deficit will likely retreat to SAR 131 billion ($34.9 billion) this year, representing 4.2% of the GDP, while the kingdom’s public debt is forecast to increase to SAR 678 billion ($180.8 billion), accounting for 21.7% of the GDP, compared to SAR 560 billion ($149.3 billion) in 2018.
Furthermore, the oil-rich GCC nation’s trade surplus is expected to decline by 3.3% to SAR 117 billion ($438.75 billion) in 2019 from SAR 121 billion ($453.75 billion) a year earlier.
