The increase in oil revenues will fuel another year of twin surpluses, with the fiscal and current account balances expected to register 14.3 percent and 31.3 percent to GDP, respectively, says a new report from the National Commercial Bank (NCB) unveiled yesterday.
The Kingdom’s real GDP growth is expected to rise by 3.9 percent, largely driven by the vibrant nonoil sector and partially due to the increase in oil production, the report said. With Saudi crude oil prices expected to average around $ 105/bbl this year, it said the fiscal account will be in surplus at 14.3 percent of GDP, a substantial SR 317.4 billion.
The current account surplus is expected to grow further as hydrocarbon exports offset the increase in imports. The report said growth in nonoil sectors, particularly construction, manufacturing and wholesale and retail trade, will also remain robust this year, mainly due to strong private and public investment and consumption spending.
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