Still Confident On Growth Outlook

February 2007 | Economic Analysis

We maintain our positive outlook for the Saudi economy over the forecast period, despite having revised down our forecasts. Growth came in at 4.2% in 2006, as a result of greater than anticipated contraction in oil production, while non-oil sector growth, though slower, remained strong at above 6%. We see a further dip in 2007 to 3.4% on the back of a contraction in the oil sector of 1.4% - as crude production is cut to stabilise global oil prices - and non-oil sector expansion at 5.7%. The Kingdom's subdued, but nevertheless strong, real growth prospects reflects slow growth in

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