Riyadh: Saudi Arabia’s gross domestic product growth slowed to 6.8 per cent in 2012 compared with the 8.5 per cent growth in 2011, data from the Central Department of Statistics and Information, or CDSI, showed on Sunday.
The statistics department has revised the 2011 GDP figure upward to 8.5 per cent from the earlier 7.1 per cent. The world’s largest crude exporter saw growth in the oil sector slow to 5.5 per cent in 2012 compared to 10.4 per cent in 2011 when the Kingdom ramped up production to make up for disruptions in Libyan output.
GDP growth in the government sector was at 6.3 per cent in 2012 compared with 8.7 per cent in the previous year while the private sector grew at 7.5 per cent compared with 7.8 per cent in 2011. Last month the Kingdom released its budget for 2013 which included plans to boost spending on education by 21 per cent and increase outlays on health care and social affairs by 16 per cent.
Despite the high levels of expenditures, Saudi Arabia will record a massive budget surplus of 386 billion Saudi riyals in 2012 due to the buoyant oil revenue allowing the government to continue with its massive fiscal spending plan launched in 2011.
