Finance Ministry Issues A Press Release on State's Budget 7 Riyadh

Fourth: Economy Developments

1-Gross Domestic Product (GDP):
According to the Central Department of Statistics and Information,the GDP for the year 1436/1437 (2015) is projected to reach, in current prices, SR 2.450 billion, a decrease of 13.35 percent compared to fiscal year 1435/1436 (2014). The non-oil public and private sectors GDP is projected to achieve a growth rate of 8.37 percent; the government sector is expected to grow by 14.57 percent and the private sector by 5.83 percent. The oil sector is projectedto decline by 42.78 percent in current prices.

The GDP at constant prices for the year 2010 is expected to rise by 3.35 percent. The oil sector is expected to grow by 3.06 percent, the government sector by 3.34 percent and the private sector by 3.74 percent. All economic components of non-oil private sector GDP have achieved positive growth. In real terms, telecommunications, transport and storage are expected to grow by 6.10 percent; building and construction by 5.60 percent; wholesale, retail, restaurants and hotels by 3.86 percent; non-oil transformative industries by 3.23 percent; and finance, insurance, real estate and business services by 2.55 percent.

During the year 1436/1437 (2015), the cost of living index increased by 2.2 percent compared to 1435/1436 (2014), according to base year 2007.
The non-oil private sector GDP deflator, one of the most important economic indicators for measuring the economy’s inflation, is expected to increase by 2.02 percent in the year 1436/1437 (2015) compared to the previous year, according to estimates from the Central Department of Statistics and Information.

2-Monetary and banking sector:
Money supply during the first ten months of the current fiscal year 1436/1437 (2015) grew 2.5 percent, compared to a growth rate of 10.4 percent for the same period last year 1435/1436 (2014). Bank deposits during the same period increased by 1.7 percent, and recorded an annual growth rate of 3.3 percent compared to last year.

During the first ten months of the current fiscal year, banks’ total claims on the public and private sectors rose by 7.9 percent, and banks continued to show financial solvency as their capital and reserves in the same period increased 9.6 percent to SR 271.9 billion.
17:52 LOCAL TIME 14:52 GMT