New figures released by the International Monetary Fund this month show that Saudi Arabia enjoyed its biggest trade and current account surpluses for 20 years in the year 2000, and hold out the prospect for a very good performance in 2001.
The Kingdom's trade surplus ballooned from $25bn in 1999 to $51.2bn last year. Meanwhile, the current account surplus grew from just $412m to $15.6bn.
This spectacular turnaround in economic fortune was, not surprisingly, driven by higher oil prices. And total exports from the Kingdom of Saudi Arabia were up by 56% to $79bn. Imports rose by a far lower 8% to $27.8bn.
The new IMF data underlined the extend to which the oil economies of the Middle East have de-coupled from the woes of the global economy, and are now basking in boom conditions not seen in two decades. An avalanche of new capital spending projects are now literally in the pipeline, led by a spectacular new focus on inward investment from foreign companies.
Economists are divided over whether 2001 will prove to be as good as the year 2000 for Saudi Arabia. The main variable is the oil price, and output levels. It may be that both factors are downshifted in the face of a global economic slowdown. That would leave the Kingdom a little poorer than in the year 2000, but still with a greatly enhanced economic position.
While the rest of the world sinks into recession and tougher times, Saudi Arabia has not had it so good since 1981.
Saudi surpluses at 20-year highs
The latest data from the IMF shows that Saudi Arabia has its biggest current and trade account surpluses for two decades. This is great news for anyone doing business with the Kingdom.
Tuesday, July 17 - 2001 at 08:44
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Peter J. CooperTuesday, July 17 - 2001 at 08:44 UAE local time (GMT+4)
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