SAMA’s net foreign assets surge to SR 2.506 trillion

The Kingdom’s M3 money supply growth accelerated to 14.1 percent year-on-year at the end of April, the fastest rate since October 2011, from 12.3 percent in the previous month, data from the Saudi Arabian Monetary Agency showed.
Bank lending to the private sector rose 16.0 percent in April, the fastest clip so far this year, after a 15.1 percent increase in the previous month.
SAMA’s net foreign assets reached a record high of SR 2.506 trillion ($ 668.2 billion) in April, Reuters reported citing the central bank data.
According to the International Monetary Fund (IMF), Saudi Arabia has been one of the best performing economies of the G20 in recent years, with the average rate of real GDP growth during 2008-12 third behind China and India.
The fiscal position is also very strong with the lowest debt-to-GDP ratio and the highest fiscal balance among the G20 economies, the IMF said recently. The outlook is positive.
According to the IMF, the nonoil private sector of the economy is projected to grow by 7.6 percent in 2013, continuing the strong growth seen in recent years.
Overall GDP growth is expected at 4.4 percent.
This is because oil output is likely to be lower than its average level in 2012 and the growth rate of government spending looks set to slow.
Inflation has picked-up since the middle of 2012 due to higher food prices and price increases in restaurants, hotels, and transportation, but remains contained at 4 percent.
According to the IMF, while lower oil output and oil prices will likely result in smaller fiscal and current account surpluses in 2013, they will remain substantial.
But it said macroeconomic policies need to remain vigilant for signs that continued strong economic growth is leading to increased inflationary pressures.