High oil prices boost budgets
Posted: 25 June 2007
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High oil prices have boosted the budget surplus in Kuwait and Qatar while they are expected to maintain growth in Saudi Arabia this year despite an expected decline in crude production, according to the Arab Monetary Fund (AMF).
The Kuwaiti budget is projected to record a much higher surplus in the fiscal year 2006-2007 of around $25 billion, far higher than expected, the AMF said. “The main reason for this increase in the surplus is the higher oil price, which averaged nearly $55 a barrel compared with a projected $36 a barrel.”
The Abu Dhabi-based Fund, the Arab League’s main financial organisation, said higher crude prices also boosted Kuwait’s economy by 6.2% last year while its trade surplus jumped by 44% to a record $39.8 billion.
Qatar also benefited from strong oil prices and a steady increase in its LNG exports, with GDP leaping by 26% in current prices to around $52.7 billion, the report said. Qatar is forecast to record a surplus of around $1.8 billion in 2006-2007 compared with a projected surplus of $632 million
In Saudi Arabia , the world’s dominant oil exporter, GDP is projected to record a real growth of 3.5-4% in 2007 compared with 4% last year. “Nominal growth will of course be much higher,” the report said.
“Growth in the GDP will be a direct result of higher public spending by around 12% while actual oil production is expected to drop to 8.44 million barrels per day in 2007 from nearly 9.12 million bpd last year.” |
