Trade policy review report by the secretariat

2  ECONOMIC ENVIRONMENT

1. 
   In 2014, Saudi Arabia was the second largest oil producer and the largest exporter of oil in the world. Hydrocarbons represented nearly 50% of GDP, 83% of exports, and 90% of government revenue. For several years up to 2014, rising oil prices and production led to large current account and fiscal surpluses. As a result Saudi Arabia had one of the strongest growing economies in the G-20. Real GDP growth averaged 5.3% annually between 2010 and 2014 and GDP per capita (in constant 1999 prices) rose from over US$19,000 in 2010 to over US$24,000 in 2014 (Table 1 .1).
   

Table 1.1 Selected macroeconomic indicators, 2011-15 Q2

(Growth rates calculated based on GDP at 2010 constant prices)

	2011	2012	2013	2014^a	2015 Q2^a,b
Real GDP (% change yoy)	10.0	5.4	2.7	3.5	3.8
Final consumption expenditure	7.5	10.2	6.5	8.6	..
Government	16.6	8.1	11.1	12.0	..
Private	1.7	11.7	3.2	6.1	..
Change in stock	-16.6	-8.1	-27.7	30.8	..
Gross fixed capital formation	15.6	5.0	5.6	2.4	..
Exports of goods and services	10.2	3.4	0.2	1.7	..
Imports of goods and services	5.5	7.7	3.7	11.3	..
Exports of goods and services/current GDP (%)	56.2	54.4	52.1	47.5	36.4
Imports of goods and services/current GDP (%)	29.6	29.3	30.9	34.2	36.3
Unemployment rate, total (%)	5.8	5.5	5.6	5.7	..
Unemployment rate, nationals (%)	12.4	12.1	11.7	11.7	..
Exchange rate (SAR/US$)	3.75	3.75	3.75	3.75	3.75
Real effective exchange rate (2010=100)	96.6	99.6	102.4	105.4	116.9
Nominal effective exchange rate (2010=100)	96.3	99.6	102.1	104.1	113.9
Inflation rate (2007=100, % change)	3.7	2.9	3.5	2.7	2.1
Money and quasi money, M3 (% change)	13.3	13.9	10.9	11.9	2.0
Interest rate on Saudi riyal (3 months SIBOR deposit, %)	0.7	0.9	1.0	0.9	..
Interest rate on Saudi riyal (6 months deposit, %)	0.8	1.0	1.0	1.0	..
Interest rate on Saudi riyal (12 months deposit, %)	1.0	1.1	1.1	1.1	..
Government revenue	44.5	45.3	41.4	37.3	..
Oil revenue	41.2	41.6	37.1	32.6	..
Other revenues	3.3	3.7	4.3	4.7	..
Government expenditure	32.9	31.7	35.0	39.7	..
Current expenditure	21.9	22.2	23.8	26.4	..
Capital expenditure	11.0	9.5	11.2	13.2	..
Surplus/deficit	11.6	13.6	6.5	-2.3	..
Total public debt	5.4	3.0	2.2	1.6	..
Gross national savings	..	..	..	..	..
Gross fixed investment	..	..	..	..	..
Terms of trade (% change)	16.6	2.2	1.8	-3.7	..
Exports of goods (% change)	45.2	6.5	-3.2	-8.9	..
Imports of goods (% change)	23.1	18.2	8.1	3.3	..
Exports of services (% change)	7.8	-4.1	7.2	3.1	-4.9
Imports of services (% change)	1.6	-5.9	4.4	26.4	40.9
Population (millions)	28.4	29.2	30.0	30.8	..