If anyone believed that 2013 would be the year that Saudi Arabia would rein in its colossal spending plans, then last week’s budget announcement will have had them scratching their heads. On 29 December, the government confirmed that it would raise spending by 19 percent in 2013 to $219bn – making that hike the highest nominal increase in spending since records began.
The trend follows several years of expansionary budgets as the Saudi authorities attempt to stimulate the economy. Looking at the results for 2012, the plan appears to be working. Preliminary data for last year show that Saudi real GDP rose by 6.8 percent, with non-oil GDP – a vital sector given the country’s attempts to diversify away from hydrocarbons – growing by 7.5 percent. Last week’s announcement also corrected the previous GDP growth figures for 2011, which have now risen from 7 percent to 8.5 percent, the highest increase since 1979.
Saudi Arabia's $220bn spending spree - Politics & Economics - ArabianBusiness.com
No comments:
Post a Comment