Saudi Arabia should have large budget surplus

Saudi Arabia should have large budget surplus
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Published November 29th, 2012 - 12:06 GMT via

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Saudi Arabia should have a large budget surplus, according to a leading economist
Saudi Arabia should have a large budget surplus, according to a leading economist
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HSBC Middle East
Simon Williams
David Bloom
Saudi government

The recent pick-up in oil prices should leave the Saudi government with double-digit budget surplus over the 2012-2013 despite marked gains in expenditure, Simon Williams, Chief Economist for HSBC Middle East, said recently at the SABB-hosted "Annual Economist Roadshow" held at the Four Seasons Hotel in Riyadh

He noted that even though political turbulences are not over, signs of normalization are visible in North Africa couples with strong economic growth indicators in theGulf.

During his speech, Williams noted that political stabilisation steps in the region and high oil prices have both contributed to speeding the pace of progress for the short term.

Stimulus policies complemented by higher oil output volumes, large surpluses and reserve accumulation offers all parties - including investors - a strong dose of confidence.

In the long-term, Williams stressed the need to increase productivity levels by elevating support for education and enhancing public support for private sector innovation and overall participation level in the national economy.

David Bloom, Global Head of Foreign Exchange Strategy at HSBC, said in the same event that managing currency exchange risk and investment approaches to widely-traded currencies have been radically altered due to recent economic slowdown among industrialised nations.

He stressed that the greater levels of ambiguity and lack of clarity should not be ignored as new linkage and relationships are formed rapidly with a real impact on global rate fluctuations.



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