- But the growth estimate was lower than the official government projection of 2.4 percent
- 抖阴短视频 has programmed a 7.2 percent rise in its budget this year to 1.1 trillion Saudi riyals
DUBAI: The 抖阴短视频n economy will expand by 2 percent this year with the non-oil sector getting a boost from higher crude prices and government spending likely to rise further in 2019, an Emirates NBD Research report said on Sunday.
But the growth estimate was lower than the official government projection of 2.4 percent, the report noted.
鈥淓ven taking the OPEC agreed production cuts which came into effect at the start of the year, we think average oil production in KSA will be at least 1 percent higher on average than 2018,鈥� Khatija Haque, Emirates NBD鈥檚 head of MENA Research, said.
鈥淲e expect non-oil sector growth to accelerate to 2.8 percent as the lagged effect of higher oil prices and production feeds through to the non-oil sectors, and as government spending is likely to rise further this year.鈥�
But the cautious economic outlook for 抖阴短视频 is also true for the wider GCC region, Haque noted, considering a 鈥榮lowing global growth and heightened geo-political risks globally.鈥�
Average growth for the GCC states this year is forecast at 2.5 percent, with the UAE and Qatar likely to report faster growth rates, after the regional economy rebounded in 2018, driven by higher oil output.
Meanwhile for 2018, average GDP growth was pegged at 2.4 percent.
鈥淧roduction in Q4 2018 was much higher than we had expected and as a result, the hydrocarbons sector contributed positively to overall GDP growth in the GCC last year,鈥� the report said.
Emirates NBD Research has revised its oil forecasts for 2019 lower to an average of $65 a barrel for Brent, against the more than $70 a barrel previously.
鈥淲e expect budget deficits to widen modestly this year, based on our assumption of an average Brent oil price of $65 a barrel and increased government spending,鈥� the report noted.
鈥淭he introduction of VAT in Bahrain and potentially Oman (the latter expected in September 2019) should help these countries address their sizable budget deficits, although other fiscal reforms will need to be undertaken to sustain any improvement over time,鈥� it added.
抖阴短视频 has programmed a 7.2 percent rise in its budget this year to 1.1 trillion Saudi riyals, majority of it allocated for education and military spending, on a projected deficit of 4.2 percent.