Saudi Arabia Economic Outlook
February 6, 2018The most recent data for 2018 suggests that the non-oil economy was hit by the introduction of the value-added tax (VAT) on 1 January, with the PMI for the non-hydrocarbon sector falling to an all-time low in January. That said, the survey also signaled that demand will recover in the coming months: Businesses continued to increase their staffing levels, and the forward-looking economic gauge climbed to an eight-month high. Moreover, the economy will benefit from higher crude prices, which reached an over three-year high in late January. Rising oil revenues and higher tax collection due to the VAT introduction will help reduce the government’s fiscal gap, despite the approval of a more expansionary budget for this year. Furthermore, the government announced on 30 January that it has seized over USD 110 billion in financial settlements stemming from its November crackdown on corruption.
Saudi Arabia Economic GrowthThe economy will rebound this year on the back of stronger government support, which will translate into increases in capital expenditure and cash transfers to individuals. However, large public imbalances, restrained oil supply in response to OPEC’s oil-cap deal and mounting geopolitical risks will put a dent in the Kingdom’s economic recovery. Met the why particular Consensus Forecast panelists expect growth of 1.6% in 2018, which is unchanged from last month’s projection. In 2019, growth is seen picking up pace to 2.5%.
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 %||Feb 20|
|Stock Market||0.2||1.00 %||Feb 20|
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Saudi Arabia Economic News
February 5, 2018
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by IHS Markit fell from 57.3 in December to 53.0 in January.
February 1, 2018
Despite a boom in U.S. shale oil supply, the continuing agreement between OPEC members to reduce production and strong global demand for the black gold have continued boosting oil prices, which rose in January to levels last seen in November 2014.
January 23, 2018
Consumer prices declined 0.1% from the previous month in December, contrasting November’s 0.1% rise.
January 4, 2018
Political tensions in Iran and a tight oil market propelled oil prices at the outset of the year to levels last seen in December 2014.
January 4, 2018
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by IHS Markit inched down from 57.5 in November to 57.3 in December.