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| Oil production in Saudi Arabia |
According to reports of Saudi Arabian Monetary Agency (SAMA) the economy of the country shot up due to the high oil prices. This has created a budget surplus for the last financial year and also the highest ever balance of payments surplus.
"Actual Gross Domestic Product (GDP) grew by 5.3%, coupled with a surplus of USD 28.5 billion in the state budget," said Hamad al-Sayari.
"The balance of payments was in the black for the sixth consecutive year, posting a record surplus of USD 52 billion in 2004," he added.
Saudi Arabia is the world's largest oil producer producing approximately 9.6 million barrels a day. Crude oil prices have risen by about 30% this year and a s a result Gulf oil revenues are expected to reach USD 300 billion this year which was USD 61 billion in 1998.
The growth in economy has played a key role in lending a helping hand to the private sector. At the same time the cost of living index rose by just over 0.3% last year. The government plans to set aside USD 11 billion from the budget surplus in 2004 for development projects. It also plans to utilize the surplus for the repayment of public debts which total about USD 160 billion.
The economy experts analyze that the nation would have a greater budget surplus in 2005. The Samba Financial Group has predicted that Saudi Arabia's real GDP growth will be 6.5% this year and the budget surplus is expected to be around USD 51 billion. Oil export revenues would come up to USD 157 billion, the experts say.
