The Ministry of Finance issued a statement on the occasion of issuance of the State's General Budget for the Fiscal Year 1438/1439H, as the following: Economic Developments The Global Economy: The International Monetary Fund (IMF) expects 3.1% growth in the global economy during 2016, and 3.4% in 2017. The IMF's oil price forecast for 2017 is estimated at USD 50.6. The Organization of the Petroleum Exporting Countries (OPEC) has projected the average global oil demand during 2017 to be 95.3 million barrels per day. The demands projected to grow by 1.3% in 2016 and 1.1% in 2017. These figures compare with an increase of 4% in 2015. 201520162017 Global Economic Growth3.1%3.1%3.4% Average Oil Price (in USD)$50.8$43$50.6 Average Global Oil Demand (in Millions of Barrels per Day)9394.295.3 Percentage Increase in Global Oil Demand 4.0%1.3%1.1% The Local Economy: The Kingdom's economy is one of the largest in the Middle East and North Africa, representing 25% of the region's GDP. It has doubled in size to rank among the top 20 largest economies in the world, climbing from number 27 in 2003. The mean real GDP growth of the Kingdom averaged 4% per annum over the past decade. During this period, the government invested SAR 1.7 trillion in capital projects including infrastructure, education and healthcare. According to the General Authority of Statistics, 2016 GDP in fixed prices (100=2010) is estimated at SAR (2,581) million, a rise of (1.40%), with that of the oil sector to grow by (3.37%). The GDP for the government sector is expected to rise by (0.51%) and the private sector to grow by (0.11%). The oil refinery activity has grown by (14.78%), the highest growth rate within the economic constituents of the real GDP. The GDP deflator of the private non-oil sector, which is a key indicator to measure inflation and the overall economy, is expected to rise by (0.99%) in 2016 compared to the previous year, according to the General Authority of Statistics. --More
