Saudi Arabia - Economist Intelligence Unit - The Economist
DOMESTIC POLITICS: The rule of the Al Saud family is expected to remain secure in 2010-11, with opposition movements fragmented and suppressed, but the government's political effectiveness will be limited. Although there is unlikely to be any move to an elected parliament, the king's power will be checked by the need to maintain consensus among senior princes with strong power bases of their own, and to accommodate the conservative clerical establishment. The king's personal standing is bolstered by his reputation for piety, but there is believed to be significant resentment of Al Saud rule, owing to perceptions of corruption, vast inequalities in the distribution of wealth, high youth unemployment, the often arbitrary application of the law, and the government's strong ties with the US. To counter this, the government will claim legitimacy through its religious credentials--domestically the king uses the title of Custodian of the Two Holy Mosques--and through extensive public spending. Wider public opinion will be difficult to gauge given tight restrictions on civil society and freedom of speech as well as a ban on any political parties. The need to buy support through patronage networks and public-sector employment will remain a constraint on economic policy.
Country Forecast Overview (3 Year)
| Key Indicators |
2008 |
2009 |
2010 |
| Real GDP Growth (%) |
1.30 |
-3.30 |
.70 |
| Consumer Price Inflation (av;%) |
9.87 |
5.00 |
3.50 |
| Budget Balance (% of GDP) |
33.05 |
.80 |
4.10 |
| Current-Account Balance (% of GDP) |
28.30 |
6.00 |
10.20 |
| Exchange Rate US$:Euro (av) |
3.75 |
3.75 |
3.75 |
| Exchange Rate US$:Euro(year-end) |
3.75 |
3.75 |
3.75 |
Saudi Arabia GDP PPP & GDP Growth Rates
2004 - 2008
| Year |
GDP in Billions of USD PPP |
% GDP Growth |
| 2004 |
438.97 |
2.88 |
| 2005 |
490.97 |
2.85 |
| 2006 |
523.05 |
0.74 |
| 2007 |
556.25 |
1.00 |
| 2008 |
591.99 |
1.30 |
Source: EIU Country Data
Saudi Arabia: risk assessment
| Risk |
October 2009 |
| Sovereign risk |
BBB |
| Currency risk |
BBB |
| Banking sector risk |
BB |
| Political risk |
B |
| Economic structure risk |
BBB |
|
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