Sayari said: "Custodian of the two Holy Mosques: It gives me great pleasure to present the fortieth annual report of the Saudi Arabian Monetary Agency. The report reviews most prominent domestic economic developments in the Kingdom during fiscal year 1423/24 (2003) and also the developments so far in the current fiscal year 2004. During 2003 (1423-1424 H) the national economy continued to make good progress for the second consecutive year. the nominal GDP grew by 13.7 percent compared to 3.0 per cent in the preceding year. This was attributable to the improvement in crude oil prices and expansion in the private sector activity which increased by 4.4 percent. This growth was accompanied by remarkable improvement in the state budget which recorded a surplus of SR 36 billion compared to a deficit of SR 20.5 billion in the preceding year. This was the result of the rationalization of expenditures and the improvement in revenues, including non-oil revenues. The balance of payments denoted a surplus of SR 111.2 billion that was never registered for more than two decades, compared to a surplus of SR 44.5 billion in the preceding year. These positive developments were achieved within an environment characterized by domestic price stability. The general cost of living index grew by 0.6 percent. These indicators reflect the strength of the Saudi economy and its capacity to overcome the negative effects of the crises witnessed by the region and the malicious terrorist explosions that occurred in our dear country aimed at undermining the social and economic stability and security of our blessed country. During the current year, the national economy will make greater progress than that in the preceding years in view of the current levels of crude oil prices, continued expansion in the private sector activity and continued improvement and development of the local investment environment. This development would not have been possible without the concerted efforts of the wise leadership and the state officials. --More 1157 Local Time 0857 GMT
