Saudi Arabia Economic Outlook
October 30, 2018The economic recovery appears to have gained steam in Q3 following Q2’s strong result, which marked the fastest growth in one-and-a-half years. Oil prices averaged higher in Q3 than in the previous quarter, while oil production increased in the same period as Saudi Arabia tries to fill the output gap left by Iran. As a result, both growth in bank lending and foreign reserves hit a nearly two-year high in August. Moreover, the PMI survey for the non-oil sector suggests a further improvement in Q3. That said, political unrest threatens to derail Saudi Arabia’s economic recovery. The killing of journalist Jamal Khashoggi in the Saudi consulate in Istanbul in October has strained the relationship between the Kingdom and the West. While economic sanctions are not on the cards, the incident threatens the Kingdom’s ambitions to attract foreign capital.
Saudi Arabia Economic GrowthEconomic growth will accelerate next year as high oil prices and increased crude production will provide room for a more accommodative fiscal stance. While economic reforms will boost business confidence, rising political noise and mounting geopolitical risks could hurt investor sentiment. Moreover, Saudi Arabia’s economic outlook remains vulnerable to oil price fluctuations, especially if oversupply concerns materialize. Met the why particular Consensus Forecast panelists expect growth of 2.5% in 2019, which is up 0.1 percentage points from last month’s projection. In 2020, growth is seen decelerating slightly to 2.3%.
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 %||Nov 15|
|Stock Market||0.2||1.00 %||Nov 15|
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Saudi Arabia Economic News
November 5, 2018
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by IHS Markit edged up from 53.4 in September to 53.8 in October.
October 25, 2018
The oil market mood flipped from fears about supply shortages in the wake of the oil sanctions against Iran to concerns over the state of the global economy and increased supply by key oil producers.
October 24, 2018
Consumer prices fell 0.2% over the previous month in September, following August’s 0.1% decrease.
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.