SAUDI ARABIA: Saudi Arabia's central bank governor says the IMF forecast of 4.4 percent economic growh this year is reasonable and achievable
Record ID:
189346
SAUDI ARABIA: Saudi Arabia's central bank governor says the IMF forecast of 4.4 percent economic growh this year is reasonable and achievable
- Title: SAUDI ARABIA: Saudi Arabia's central bank governor says the IMF forecast of 4.4 percent economic growh this year is reasonable and achievable
- Date: 17th March 2014
- Summary: RIYADH, SAUDI ARABIA (MARCH 16, 2014) (REUTERS) VARIOUS EXTERIORS OF SAUDI MONITORY AGENCY FAHAD AL-MUBARAK, SAUDI CENTRAL BANK GOVERNOR, TAKING HIS SEAT DELEGATES SEATED FOR NEWS CONFERENCE FAHAD AL-MUBARAK WELCOMING ATTENDANTS VARIOUS OF ATTENDANTS (SOUNDBITE) (Arabic) SAUDI CENTRAL BANK GOVERNOR, FAHAD AL-MUBARAK, SAYING: "(Inflation) results for the beginning of this year are less than that. But for the whole year, the IMF forecasts are reasonable. The inflation rate will be less than in other emerging countries." VARIOUS OF REPORTER ASKING QUESTION (SOUNDBITE) (English) SAUDI CENTRAL BANK GOVERNOR, FAHAD AL-MUBARAK, SAYING: "We would hope that first of all that the private sector will be the main growth driver (this year)." VARIOUS OF REPORTER ASKING QUESTION (SOUNDBITE) (English ) SAUDI CENTRAL BANK GOVERNOR, FAHAD AL-MUBARAK, SAYING: "In terms of QE (quantitative easing), we were not affected much by its implementation in the first place. Now that it is being withdrawn, mainly from the U.S., we do not see an effect on our monetary policy or our banking system." VARIOUS OF REPORTER AT NEWS CONFERENCE LOGO OF SAUDI MONITORY AGENCY FAHAD AL-MUBARAK AT END OF NEWS CONFERENCE
- Embargoed: 1st April 2014 13:00
- Keywords:
- Location: Saudi Arabia
- Country: Saudi Arabia
- Topics: Finance
- Reuters ID: LVAEG04QAM13WY6WVCB8ES03OHRX
- Story Text: Saudi Arabia's economy can achieve growth of 4.4 percent in 2014, in line with a forecast by the International Monetary Fund (IMF), the central bank governor said on Sunday (March 16).
Inflation in the desert kingdom is forecast at 3.0 percent this year by the IMF, bank governor Fahad al-Mubarak also said, citing the Fund's latest available prediction.
"(Inflation) results for the beginning of this year are less than that. But for the whole year, the IMF forecasts are reasonable. The inflation rate will be less than in other emerging countries," Mubarak told a news conference.
The country's economic growth slowed to 3.8 percent in 2013 from 5.8 percent in the previous year as oil output, which accounts for nearly half of overall Gross Domestic Product (GDP), fell after a robust increase in 2012.
Actual government budget spending rose by a modest 6 percent in 2012 and by the same rate in 2013 after a jump of over 26 percent in 2011, when the Gulf monarchy boosted social handouts at a time of Middle East unrest.
But Mubarak said he had high hopes for the coming year.
"We see that the private sector will be the main growth driver this year. Government investments continue to be the main driver for private sector growth, so I am optimistic," he said.
He said Saudi Arabia's current central bank policy rates were reasonable and balanced, and tapering of the U.S. Federal Reserve's bond purchases was unlikely to affect the kingdom's monetary policy direction.
"In terms of QE (quantitative easing), we were not affected much by its implementation in the first place. Now that it is being withdrawn, mainly from the U.S., we do not see an effect on our monetary policy or our banking system," he said.
Saudi Arabia, which pegs its riyal currency to the U.S. dollar, has kept its repo rate at 2.0 percent since January 2009 and its reverse repo rate at 0.25 percent since June 2009, after a series of cuts that followed the 2008 global financial crisis. - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2014. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None