Saudi Arabia Economic Outlook
June 7, 2022After expanding at the fastest pace in more than a decade during Q1, the economy is likely to remain at full throttle in Q2. Thanks to an increased OPEC+ quota, oil production rose to its highest level in two years during April. After slipping during that same month, oil prices then recorded their highest monthly average since 2011 in May. Rising oil prices are boosting the external and fiscal balances. However, this windfall is unlikely to boost GDP as much as in recent years. The government is concerned that as the world turns away from fossil fuels, this could be oil’s last great bull run. As a result, it is planning to plough money from this windfall into the country’s USD 600 billion sovereign wealth fund as part of its effort to diversify the economy. It will also use some of it to rebuild foreign exchange reserves and reduce public debt.
Saudi Arabia Economic GrowthGDP forecasts were once again adjusted upwards this month: The economy is set to grow at the second-fastest rate in MENA due to higher OPEC+ quotas and a multi-year high oil prices. On 2 June, OPEC+ agreed to ramp up oil production quota increases in July and August by 50.0%, further improving the outlook. Risks to the outlook include rising global inflation and interest rates. FocusEconomics panelists see GDP growing 7.4% in 2022, which is up 0.2 percentage points from last month’s forecast. In 2023, the panel sees economic growth at 3.6%.
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 %||Dec 31|
|Stock Market||0.2||1.00 %||Jan 07|
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Saudi Arabia Economic News
November 29, 2022
The OPEC oil basket traded at USD 90.8 per barrel on average over the last month, down 3.0% from the prior month.
November 15, 2022
Inflation moderated to 3.0% in October, easing slightly from September’s 3.1%.
November 2, 2022
The Purchasing Managers’ Index (PMI), produced by S&P Global, came in at 57.2 in October, up from September's 56.6.
November 1, 2022
The OPEC oil basket traded at USD 98.5 per barrel on average over the last month, up 4.3% from the prior month.
October 31, 2022
A flash estimate showed that the economy grew 8.6% on an annual basis in Q3, thereby confirming the economy continued to grow at one of fastest rates in the region after having expanded 12.2% in Q2. The oil sector grew 14.5% in Q3 compared to 22.9% in Q2.