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In a Report of the Predictive Indicator On the State of National Economy

Thursday 10 March 2016

​A report of the predictive indicator which was prepared by Riyadh Chamber ,  predicted the  growth  of the  national economy by 2,3% during 2016 and that is less than the average rate  i.e. 5,5% which was  fulfilled  during the last years (2010- 2014) . The report referred that to the decline of international oil markets and the  slowness of international economy growth .

The report of the indicator  which was prepared by the sector of studies and information in Riyadh Chamber , stated that non-oil sectors can play a significant role in boosting economic growth  and compensate  for  the reduction of oil prices . Non-oil sectors also benefit  from governmental investment which was pumped during the last years . In addition , the results of economic transformation program which was adopted by the government . The program seeks to  rationalize  public expenditures  ,continue development programs and projects,  stimulate employment of Saudis and  increase the efforts of private sector .

The indicator observed negative effects of reduction on the Kingdom's revenues of oil . Which included the need of depending on financial reserve to cover  inability of revenues , fear of draining them in case of the continuum of oil price reduction , reduction of government investment in the end of 2015 to an expected rate of 1,2% compared to the amount of investments in 2014 .