RIYADH — The Kingdom has registered a higher economic growth last year and it is expected to be higher this fiscal year too, Finance Minister Dr. Ibrahim Al-Assaf said here, Tuesday. The minister emphasized that the Kingdom does not agree with the projections of International Monetary Fund (IMF) with regard to its economic growth for the current year. Reacting to a recent IMF report, which predicted that the Saudi economic growth will slow to 4.4 percent in 2013 from 6.8 percent last year due to an expected fall in oil production, and cuts in government spending, Al-Assaf said the world's top economic body was making its own independent assessment buy using its special criteria. “We tend to disagree with the assessment,” Al-Assaf told reporters after inaugurating the Second Saudi Forum for Small and Medium Enterprises (SMEs) in the capital, Saudi Press Agency said. The IMF report, which followed its delegation's talks with Saudi officials, also said that it was the right time for the Kingdom to undergo fiscal reforms, to hike fuel prices to reduce consumption and to take precautionary measures to contain inflation. Assaf said: “We had not agreed with its projections that also pointed to a slowdown in economic growth last year. On the other hand, our estimates and expectations were more accurate. Besides, we have registered a high economic growth,” he said. Al-Assaf hoped that this year's economic growth would also be higher. “We are not underestimating the fact that the beginning of issuing such a report or the discussion about the Kingdom's economy was a very positive factor. The grading of the Saudi economy by the international rating agencies was also excellent.” The minister noted that he had articulated his viewpoints about the style of functioning of the international rating agencies. “My fear was that they classify countries in accordance with their position in the groups of developed or developing countries or any other groups. They do not look at the fundamentals of every nation's economy minutely, irrespective of the fact that whether they are located in America or Europe or the Arabian Peninsula,” he said while reiterating that Saudi Arabia wants that these fundamentals should be taken into consideration beyond any other parameters. While criticizing this attitude, Assaf said that the Kingdom evaluates that the rating of its economy is higher than what was mentioned in such reports like that of IMF. “At the same time, we also respect their efforts. We could see this year that they elevated their evaluation of the Saudi economy in a positive way,” he added. Earlier, opening the forum, Assaf said the Saudi economy is creating immense opportunities for SMEs so as to benefit the citizens instead of relying on cover-up business. The recent order by Custodian of the Two Holy Mosques King Abdullah to increase the capital of Saudi Credit and Savings Bank by SR30 billion will be a boost to this vital sector, he noted.
