Falling oil prices affect GDP growth rates of Gulf States
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)
© 2001 Mena Report (www.menareport.com)