With the continued increase in world oil demand and rising prices, Saudi Arabia is expected to post an economic growth of 6.4 percent this year.
According to the Saudi Economic Bulletin, 2nd quarter 2004, issued by the Saudi British Bank (SABB), the non-oil sector is fairly consistent in its annual growth performance staying within a range of 2.4 percent to 4.0 percent over the last six years.
Despite the Saudi government attempts to bring down public sector growth, it has averaged 2.7 percent annually, more than twice the target growth of the Seventh Development Plan (7DP) and the 2020 vision, the SABB bulletin, which was prepared by SABB economic adviser Prof. John Presley, said.
Manufacturing growth has averaged 4.0 percent and kept within a narrow range of 2.3 percent to 4.8 percent. Growth in wholesale and retail trade has fallen below 5 percent per annum over the last four years.
The Kingdom will benefit enormously due to major developments in the world oil market.
According to the SABB bulletin, world oil demand growth continues to rise and the IEA (International Energy Agency) now expects 2.2 percent growth in 2004 and the same in 2005, with non-OPEC oil supply growing by only 2.1 million bpd to end 2005 and therefore unable to meet the overall increase in oil demand (creating more demand for OPEC oil). (menareport.com)
© 2004 Mena Report (www.menareport.com)
