Saudi Arabia’s economy is expected to grow by 4.1 percent in real terms next year as domestic demand in the top OPEC oil exporter will pick up, EFG-Hermes said in a report.
In 2011, GDP growth in real terms will accelerate to 4.5 percent with the non-oil sector improving, driven by government investment programmes and private consumption, the investment bank’s chief economist Monica Malik said in a report.
“We expect a notable improvement in the economy in 2010 and 2011,” Malik said. “Along with net exports making a positive contribution, we also expect to see a pickup of domestic drivers, especially as government projects announced in 2009 start to be implemented,” EFG said.
Non-oil GDP would rise in real terms by 4.4 percent in 2010, up from 3 percent this year, the report said, adding that annual inflation would be around 4.4 percent on average next year.
“With only a tentative recovery in credit growth we expected limited (if any) increase in interest rates in 2010,” the Egyptian bank said.
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