Monday, 11 January 2010

NCB Capital Raises Saudi Arabia Growth Forecast to 4 Percent

Saudi Arabia’s economy will expand 4 percent this year due to government spending and an increase in oil prices to an average of $80 a barrel, NCB Capital, the Riyadh-based investment company, said.

NCB Capital increased its growth forecast from 3.8 percent and its oil price assumption from $73. Inflation will average 5 percent this year as compared with 4.4 percent last year, chief economist Jarmo Kotilaine said in the e-mailed report.

Saudi Arabia, the world’s largest oil exporter, forecast a budget deficit of 70 billion riyals ($18.7 billion) this year as the government plans to spend 540 billion riyals, 14 percent above its target for last year. The government said last month that the economy grew 0.15 percent in 2009.END

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