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FINANCIAL NEWS
Saudi’s nonoil GDP growth to average 4.3 percent
28 Dec 2014
(MENAFN) According to the NCB’s Saudi Budget Report, the growth of the nonoil GDP is expected to average around 4.3 percent during 2015-2019, as most sectors, mainly manufacturing and construction, will benefit from the USD319.49 billion capital expenditures investments they made on their projects during the 2008-2013 period, Arab News reported.
The report added that the current decline in the oil prices is expected to affect the kingdom’s economy, with expectations that its real GDP growth will be at 3.4 percent in 2015, while the nonoil private sector is estimated to grow by 4.0 percent, a decline from the 5.7 percent annual growth it recorded in 2014, which was driven by construction, trade, and manufacturing that grew by 6.7 percent, 6.0 percent and 6.5 percent, respectively.
The effects of the decline of the oil prices are projected to hit the Saudi economy, which accelerated by 3.6 percent during 2014, outperforming 2013’s growth of 2.7 percent, thus leading it to register its first deficit since 2009 at USD14.37 billion, approximately 1.9 percent of GDP.
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