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FINANCIAL NEWS
Report: Saudi economy to expand 3.7%
14 Oct 2010
(MENAFN) The Economist Intelligence Unit (EIU) said in a special country report that Saudi Arabia’s economy is forecast to grow by an average of 3.7 percent a year in 2010-14, a slowdown from the annual average of 4.9 percent between 2003 and 2008, but a recovery from 0.6 percent in 2009, Arab News reported.
According to the report, the economy will be heavily supported by extensive government spending and by a public sector that continues to absorb a large proportion of job market entrants.
Saudi Arabia’s government consumption will rise in 2010-11 before falling slightly in the remainder of the forecast period as private-sector growth accelerates, the report said.
Growth in the nonoil private sector is projected to pick up over the forecast period, averaging 3.9 percent, as it recovers from a tightening of bank lending and as foreign direct investment (FDI) rises.
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