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FINANCIAL NEWS
Saudi Arabia: No plans to boost spending
31 May 2010
(MENAFN) Saudi Finance Minister Ibrahim Al Assaf stated that the Kingdom will not push public spending beyond its 2010 plan to keep inflation under control and plans to cut its debt before any new bond issues may be considered, Reuters reported
Saudi Arabia, world’s top oil exporter, ramped up spending to help its crude-reliant economy sail through the global crisis, launching a $400 billion five-year plan in 2008, the largest stimulus relative to gross domestic product among 20 leading nations.
Analysts expected a fiscal surplus of Saudi Arabia, which does not release monthly budget updates, to reach 4.8 percent of gross domestic product (GDP) this year.
Despite a slowdown in bank lending, Saudi inflation hit a 10-month peak of 4.9 percent last month. It is still well below double-digit rates seen during an oil boom of 2008.
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