Saudi Arabia Economic Forecast

Saudi Arabia has long been known for its strong economy based on oil and gas. In addition, this country’s economy has skirted many of the problems other countries have faced primarily because of the government maintaining strong control. With Saudi Arabia possessing over 20% of the validated oil and gas national reserves in the world, it ranks as the largest exporter and is a leader for the Oil and Petroleum Exporting Countries, or OPEC.

Saudi Arabia has long been known for its strong economy based on oil and gas. In addition, this country’s economy has skirted many of the problems other countries have faced primarily because of the government maintaining strong control. With Saudi Arabia possessing over 20% of the validated oil and gas national reserves in the world, it ranks as the largest exporter and is a leader for the Oil and Petroleum Exporting Countries, or OPEC. In fact, of the country’s budget earnings, the gas and oil sector accounts for about 80%, for Gross Domestic Product, 45%, and for export revenues, 90%.

In 2008, domestic public debt was paid down due to high oil and gas prices. In addition, with ownership of foreign assets, more private sector growth is being encouraged, specifically in areas of natural gas exploration, telecommunications, power generation, and petrochemicals. Other positive changes have been an increase of technical skills and education, along with facilities, infrastructure development, and government salaries putting the Saudi Arabia economy is a good position. Even so, some growth decreased in 2009 due to the global financial crisis, tighter than normal international credit, and lower prices for oil and gas but even with this, Saudi Arabia stands strong.

Saudi Arabia GDP Forecast

While most other countries were hurt or devastated by the world financial crisis, because the Saudi Arabia government had built significant financial reserves the country was not affected nearly as much. Even the small damage experienced was quickly resolved in the form of direct capital going into financial institutions and banks to help with guaranteed bank deposits as well as lower rates. During the financial crisis in 2008, the Saudi Arabia GDP (Gross Domestic Product, Current Prices, US Dollars) was reported at $475.73 billion in US currency. From that time to the end of 2009, only a slight reduction was seen, which left numbers at $369.671 and putting 2009 at number 26 for world rankings. As far as 2010, experts are predicting the country’s GDP will be only slightly different at $438.01 billion but for 2015, a more significant change is expected that would put the GDP at $644.97 billion in US dollars.

Saudi Arabia Unemployment Forecast

The most recent report shows that the Saudi Arabia population is over 28 million and of these people, around 7 million are working of which 80% are immigrants. Interestingly, while this country is the largest exporter of oil and gas and considered a very wealthy country, the Saudi Arabia unemployment rate is still at 11.6%. However, it is important to note that approximately 6% of people working are from overseas so if this number was lowered and more were assigned to people in the country, the unemployment rate would drop.

Saudi Arabia Inflation Rate Forecast

For the future, averages for the year are used. Going back to 2008, the rate was at 9.87%, dropping by almost 50% over next 12 months. With that, 2009 ended at 5.057%, placing Saudi Arabia for worldwide ranking at number 61. Regarding the future for the country’s inflation rate, experts believe that 2010 will end at 5.20%, not much of a change from the prior year. However, for 2015, predictions are that the Saudi Arabia inflation rate will be at 3.00%.

Saudi Arabia Current Account Balance Forecast

Predictions for the Saudi Arabia current account balance are made by using major classifications and with this, experts compare the economy’s health in relation to other countries. The 2008 current account balance reported at $132.50 billion in US dollars and one year later, at $20.478 billion, a relative decline. At that time, Saudi Arabia was ranked at number 15. However, in looking at 2010 and 2015, experts forecast the current account balance will be at $39.86 billion and then $65.981 billion, also reported in US currency.