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IMF urges Saudi Arabia to monitor inflation

The International Monetary Fund has revised down its forecast for Saudi Arabia's fiscal surplus to 9.3% of gross domestic product in 2011, from 12.8% seen in April, Reuters has reported. The fund has described Saudi Arabia's near-term economic outlook as favourable but warned that the kingdom should carefully monitor possible inflationary pressures due to a recent increase in social spending. The forecast for the 2011 current account surplus of the world's No 1 oil exporter was revised up to 20.1% of GDP, from a previous 19.8%.