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FINANCIAL NEWS
Saudi petroleum refining sector to fall to 2.5 percent in 2015
11 Jan 2015
(MENAFN) Saudi Arabia’s economic growth is expected to decline to 2.5 percent in 2015 down from 3.7 percent in 2014, according to Jadwa Investment, Arab News reported.
This lower predicted rate fo growth is mainly due to an anticipated contraction in the oil sector by 0.6 percent, Riyadh-based private equity house and investment bank said in its 2015 Saudi Economy Report.
“We expect that the economy will continue performing strongly in 2015, albeit at a slower pace than in the previous few years. Lower oil production will drag down overall GDP growth while the nonoil private sector will continue to record robust growth,” said the Jadwa researchers.
The decrease in oil prices will mean a narrowing current account surplus and a larger-than-budgeted fiscal deficit, said the report. It said that oil production is expected to decline in 2015, compared with an increase of 0.5 percent in 2014.
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