Saudi sees economic growth by 6.5 percent in 2011

A key Saudi bank said it sees economic growth in Saudi Arabia this year as GDP to rise by 6.5 percent due to higher oil output and public spending. Saudi Arabia’s economy grew by around 3.8 percent in real terms in 2010 and is expected to sharply pick up by nearly 6.5 percent this year because of higher oil output and public spending. The world’s top oil exporter and largest Arab economy is expected to overshoot its budgeted expenditure by more than a third in 2011, tempted by a surge in crude prices and its foreign assets, the Saudi American Bank (Samba) said. “We think real growth will reach 6.5 percent this year, the highest level since 2003, and comparable to the rates seen in the most dynamic emerging markets,” Samba said.