Macroeconomic Forecast Saudi Arabia

June 2007 | Macroeconomic Forecasts

We have revised down our growth forecasts on the back of new data from the Saudi Arabian Monetary Agency (SAMA). We now expect real GDP to drop to 2.7% this year, picking up to 3.7% in 2008 and then averaging just under 4% annually thereafter. While a slowdown in the oil sector had been expected and incorporated into our forecasts, the weaker non-oil sector activity in particular - now 3.7% in 2005 and 5.1% in 2006 (as opposed to 6.8% and 6.4%, respectively, as previously thought) - has dampened our bullish outlook.

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