Saudi Arabia's growth up to 3.9%

Saudi Arabia's overall growth is expected to moderate to 3. 9% in 2013 due to the projected small decline in crude oil production, but pick up again to 4.5% in 2014, according to a report. Saudi Arabia's near-term economic outlook remains favourable but it still faces major challenges in enhancing the quality of education, appropriate training and development of a more efficient labour market, Arab News daily report said Monday citing data from the Institute of International Finance (IIF). Nonhydrocarbon growth, however, will remain robust at 5.2% as continued structural reforms and rapid growth in population underpin private consumption and investment. Low public debt, ample foreign exchange assets, and continued structural reforms would support the pace of nonhydrocarbon real GDP growth even if oil prices were to drop, the report said. The IIF recently released its updated forecast for the Middle East and North Africa (MENA), noting that the divergence in economic prospects between oil exporting and oil importing countries has grown since the beginning of the Arab Spring uprisings.