FINANCIAL NEWS

Saudi debt to drop to 8% at year-end

11 Dec 2011

(MENAFN) Moody’s investor service said that in the current year, Saudi would be able to reduce its debt to about 8 percent of gross domestic product (GDP), reported Emirates 24/7.

The agency added that the reduction would result from strong oil output accompanied with higher crude prices that would increase the country’s foreign assets at the end of the year.

It also said that GDP growth would rise by around 6.5 percent, due to a rise in spending, whereas inflation might go up to 6 percent, recording one of its highest levels.

It is worth noting that Saudi’s net foreign assets will be forecasted to reach 95 percent of GDP at the end of 2011, with debt levels falling to around 8 percent of GDP.

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