08 Aug 2012
(MENAFN) The International Monetary Fund (IMF) said in a review of Saudi Arabia’s economy that the Gulf Kingdom’s economy outlook is bright, expecting real GDP to grow by 6 percent this year, Saudi Gazette reported.
Saudi GDP grew by 7.1 percent last year, while its non-oil economy grew by 8 percent during the year, the highest since 1981, the report said.
The IMF predicted Saudi real oil GDP to advance by 4.5 percent in 2012, while the real non-oil GDP was expected to grow by 6.5 percent.
Despite increased economic activity, inflation stabilized at 5 percent as food inflation subsided and imports of capital goods and labor helped prevent bottlenecks from emerging, it added.
The report also said that Saudi Arabia benefited from strong oil revenues for strengthening its fiscal and external balances, while it has increased social spending and savings for future generations.
The report called the Saudi authorities to depress any inflation pressures that may result from robust growth through a proactive use of liquidity and macroprudential policy tools.
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