Saudi Arabia is heading for real GDP growth of 6 percent in 2012, according to Moody's Investors Service. It also said the outlook for Saudi Arabia's banking system remains stable.
The Kingdom's nonoil private-sector real GDP to expand by 5.2 percent in 2012 and 5.5 percent in 2013, following 6.4 percent growth in 2011, with overall real GDP growth forecast at 6 percent in 2012, one of the highest rates in the GCC, Moody's said.
Commenting on Moody's report, Asim Bukhtiar, vice president and head of research at Riyad Capital, said: "Considering that the Kingdom managed 4.6 percent GDP growth in a difficult 2010, the projected 6.0 percent in 2012 should be achievable." He said: "Strong commercial credit demand suggests that the economic engine is humming along. However, 2013 may present challenges as trading partners grapple with deteriorating growth prospects." The Moody's report said economic activity and banking-system credit growth will be supported by the positive effects of high government spending and increased private-sector business activity.
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