Saudi Arabia Economic Outlook
October 2, 2018The economic recovery continued to gain traction in Q2, with GDP expanding at the fastest pace in one-and-a-half years. The Saudi economy continued to benefit from higher oil prices—which are around 50% above the levels observed last year—and solid crude oil output. Against this backdrop, the government loosened its fiscal stance, which mainly translated into higher handouts and cash transfers to households to offset negative spillovers from subsidy cuts and the introduction of a VAT in January. Despite a soft start to the year, activity in the non-oil sectors is slowly gathering momentum, with the PMI for the non-hydrocarbon sector in July and August hovering above Q2’s average. Saudi Arabia’s solid economic position likely paved the way for JP Morgan to announce, on 26 September, the inclusion of the country into its emerging market government bond indexes next year, which lead Saudi bonds to rally in late September.
Saudi Arabia Economic GrowthEconomic growth will gather steam next year as its stronger fiscal position should spur private consumption and investment. However, downside risks still loom large over the country’s economic outlook, particularly stemming from rising trade protectionism that could add downward pressure on global growth, as well as from mounting geopolitical risks in the region and uncertainty about the country’s reform agenda. Met the why particular Consensus Forecast panelists expect growth of 2.0% in 2018. In 2019, growth is seen accelerating to 2.4%, which is unchanged from last month’s projection.
Saudi Arabia Economy Data
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Saudi Arabia Facts
|Bond Yield||2.49||0.0 %||Jun 23|
|Exchange Rate||3.75||0.0 %||Oct 16|
|Stock Market||0.2||1.00 %||Oct 12|
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Saudi Arabia Economic News
October 3, 2018
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by IHS Markit edged down from 55.1 in August to 53.4 in September.
October 1, 2018
Oil prices continued to climb in recent weeks due to fears of a decline in global supply once fresh U.S. sanctions against Iran come into force on 4 November.
September 30, 2018
The Saudi economy continued to recover in the second quarter on the back of higher oil prices and increased oil production.
September 25, 2018
Consumer prices fell 0.2% over the previous month in August, contrasting July’s 0.1% rise.
September 3, 2018
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by IHS Markit edged up to 55.1 in August from 54.9 in July.