Riyadh – Mubasher: Saudi Arabia’s real gross domestic product (GDP) is expected to grow 1.3% this year after contracting by 0.7% a year earlier, Moody’s Investors Services said in a report on Wednesday.
The increase in oil prices and the kingdom's general expenses will boost the GDP, the credit ratings agency added.
Moody’s forecast that the oil-rich nation's general expenses will increase by 5.6% this year, in addition to other stimulus which will support non-oil economy to rise by 2.2%.
These procedures will improve credit after 1% decline in 2017, the New York-based rating agency highlighted.
Moody’s noted that the outlook for Saudi banks is stable as the economy is projected to resume growth in 2018, backed by higher public spending and other catalysts.