RIYADH, Nov 13: Riding on strong crude markets, Saudi Arabia has announced posting a budget surplus of SR218 billion ($58.13bn) in 2005, registering a gross domestic product growth of a healthy 6.5 per cent, compared to 5.3 per cent the previous year, a Saudi Arabian Monetary Agency for 2005 submitted to King Abdullah on Sunday evening revealed.

It was the third consecutive budget surplus. In December 2005, Saudi Arabia had said it expected to post a budget surplus of $57 billion for the year. The surplus reached $26 billion in 2004 and $12 billion in 2003.

During the under review Saudi Arabia accession to the World Trade Organisation (WTO) was also granted, which SAMA governor Hamad Al-Sayari termed “an important step towards achieving the major economic objectives of 2005.”

Spelling out the major economic achievements in 2005, the SAMA chief said: "The actual GDP grew by 6.5 per cent compared to 5.3 per cent last year. The actual private sector GDP increased by 6.6 per cent, while the public sector GDP soared by 7.2 per cent."

The kingdom's balance of payment surplus in current account rose to SR338 billion ($90.13 billion) in 2005. This was almost double the SR195 billion surpluses registered in the preceding year (2004), he highlighted. As a result the currency basket rose by 11.6 per cent.

Mr Sayari emphasised prices of most of the local products remained stable throughout 2005 and the general cost of living index rose by less than one per cent.