Saudi Arabia was ranked eighth in the IMF’s listing of the world’s 10 high growth economies of 2012. The IMF predicts Saudi Arabia’s GDP to grow by six per cent in 2012. According to data released by the Central Department of Statistics and Information (CDSI), the Saudi economy grew by 5.94 per cent in the first quarter, compared to the same period last year.
Inflation in the Kingdom also seems to be moderating with June inflation at 4.9 per cent, which was the lowest level this year and the first time that inflation had dipped below five per cent in the prior 10 months.
In January, Saudi Arabia announced its 2012 budget with expenditure set at $184 billion and gave emphasis to social welfare, education and healthcare, although the government indicated that expenditure may slow going forward.
(Research by Kuwait Financial Centre (Markaz); financial data from Reuters 2012).