Saudi Arabia Economic Outlook
September 7, 2021GDP expanded for the first time since Q2 2019 in the second quarter of this year, according to a flash estimate. The rebound was primarily the result of a weaker contraction in the oil sector, which was consistent with OPEC+’s decision to ease output cuts since May. Moreover, growth in the non-oil sector surged in the second quarter. The real estate market, wholesale and retail trade, and the manufacturing sectors were particularly strong in Q2. Turning to Q3, GDP growth should be gaining steam as OPEC+’s commitment to lower production cuts continues to fuel the oil sector: Crude oil output hit the highest level since April 2020 in July, and it should remain on the up in the rest of the quarter. Meanwhile, the non-oil private sector PMI remained comfortably in expansionary territory in July and August, signaling strong growth in the non-oil economy.
Saudi Arabia Economic GrowthGDP should grow robustly in 2021 due to stronger domestic and external demand. Nevertheless, weaker government expenditure and lower average oil production relative to last year will likely weigh on overall GDP, while uncertainty with regard to new Covid-19 variants and oil demand poses a downside risk to the outlook. FocusEconomics panelists see GDP growing 2.4% in 2021, which is unchanged from last month’s forecast. In 2022, the panel sees economic growth at 4.6%.
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Saudi Arabia Facts
|Bond Yield||2.49||0.0 %||Jun 23|
|Exchange Rate||3.75||0.0 %||Dec 31|
|Stock Market||0.2||1.00 %||Jan 07|
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Saudi Arabia Economic News
September 5, 2021
The Purchasing Managers’ Index (PMI), produced by IHS Markit, came in at 54.1 in August, which was down from July’s 55.8.
August 15, 2021
Consumer prices increased 0.20% over the previous month in July, marginally stronger than June’s 0.15% rise.
August 9, 2021
A flash estimate showed the economy grew 1.5% on an annual basis in the second quarter, after contracting 3.0% in the first quarter.
August 3, 2021
The Purchasing Managers’ Index (PMI), produced by IHS Markit, came in at 55.8 in July, which was down from June’s 56.4.
July 30, 2021
Oil prices increased robustly at the tail end of July, predominately due to falling inventories in the U.S. and a healthier demand outlook as progress on the vaccination front outweighed risks related to the most recent rise in new Covid-19 cases globally.