Macroeconomic Forecast Saudi Arabia

We expect Saudi Arabia's external position to remain healthy for the foreseeable future. While moderating oil prices will shrink the trade surplus in 2012, we nevertheless forecast the current account to remain in the black to the tune of 14.8% of GDP, compared with 23.5% in 2011. Moreover, we highlight that a massive stock of foreign reserves leaves the economy well-placed to weather the impact of even a sharper-than-expected dip in global oil demand.

To read the full article, please choose one of the following options: