Falling oil prices affect GDP growth rates of Gulf States

Published August 23rd, 2001 - 03:00 GMT

The real growth rate of Gulf States’ GDP is estimated at three percent for the year 2001, compared with five percent last year, according to a recent report of the United Nations Economic & Social Committee of Western Asia (Escwa). The report attributes the lower rate to the recent drop in international oil prices, according to London based Al-Hayat daily.

Despite the fall, the value of the Gulf States’ total GDP is expected to hit $287 billion by the end of 2001, up from $278 billion in 2000. This is the highest GDP value in the last five years.

The report stated that Kuwait’s GDP grew to $30.6 billion in 2000, up from $29.6 billion in 1999, and is expected to grow to $31.4 billion by the end of 2001. This implies a 2.5 percent real growth rate compared with 3.5 percent in 1999.

In addition, Saudi oil revenues were estimated at $74 billion in 2000. This figure translates into a $31 billion increase compared with 1999, equivalent to an astounding 68 percent rise.

Furthermore, oil revenues of the Arabian Gulf states were estimated at $130 billion in 2000. This figure implies a $55 billion climb compared with 1999. Average per barrel crude oil price rose by 58 percent during the same period. –(Mena Report)