Non-Oil Sector To Boost Future Growth

November 2006 | Economic Analysis

Fuelled by government spending, real GDP growth should come in at 5.5% in 2006, falling slightly to 5.03% next year as hydrocarbons sectors growth decelerates. Robust non-hydrocarbon sector expansion - above the 6% mark over the forecast period - will therefore underpin growth levels which should average 5.5% annually thereafter. With hydrocarbons revenues continuing to flow in, we expect fiscal policy to remain expansionary, and as such will boost consumption by raising demand and investment and hence will positively impact on growth. With an estimated budget surplus of 39.8% of GDP in 2006 and forex reserves piling up at US$47.08bn

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