JEDDAH – Saudi Arabia’s real GDP is expected to grow at 3.6 percent and 3.4 percent respectively in the near-term on the back of high oil prices as well as a surge in government infrastructure spending and public sector wage growth, the National Bank of Kuwait (NBK) said in its latest monthly review, adding that they will continue to generate solid growth going forward.
"Barring a major global downturn, we expect Saudi Arabia to remain comfortable with oil prices at around $100 per barrel – well above the Kingdom’s likely budget breakeven oil price for the next couple of years. This should imply only gradual declines in Saudi oil output as the authorities attempt to balance a slightly looser global oil market," the report said. However, longer-term growth prospects depend upon enhancing the role of the private sector through structural reforms, it noted.
NBK said it was expecting a one percent drop in real non-oil GDP this year and 2 percent the following year.
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