Saudi Arabia Economic Outlook
January 8, 2019The economy benefited from increased crude oil production and higher prices for the black gold in the third quarter, prompting GDP to expand at the fastest pace in two-and-a-half years. Although growth in non-oil private activity accelerated slightly, it remained low compared to historical figures. Subdued dynamics in the private sector, a rising unemployment rate and low levels of foreign investment are casting doubts over the much-trumpeted Saudi Vision 2030. In order to shore up economic growth, on 18 December, the government announced an expansionary budget for 2019, which focuses on boosting capital expenditure. Analysts, however, warn that the projected revenues could be on the optimistic side. While the implied price is about USD 70 per barrel, oil prices have fallen in recent weeks and hit an over one-year low of USD 50.1 per barrel on 26 December.
Saudi Arabia Economic GrowthThe economic recovery should broaden this year due to renewed fiscal stimulus, which should support domestic demand. Although the Saudi government sees the recent drop in oil prices as temporary, it is still unclear whether the recently-approved oil production cut will be enough to push up oil prices. Our panel expects growth of 2.2% in 2019, which is down 0.2 percentage points from last month’s projection. In 2020, growth is also seen at 2.2%.
Saudi Arabia Economy Data
5 years of Saudi Arabia economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
Saudi Arabia Facts
|Bond Yield||2.49||0.0 %||Jun 23|
|Exchange Rate||3.75||0.0 %||Jan 16|
|Stock Market||0.2||1.00 %||Jan 16|
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Saudi Arabia Economic News
January 10, 2019
The Purchasing Managers’ Index (PMI), sponsored by Emirates NBD and produced by IHS Markit, fell from 55.2 in November to 54.5 in December.
January 2, 2019
On 26 December, OPEC oil prices fell to their lowest since September 2017 (USD 50.1 per barrel) due to concerns over excess supply.
December 31, 2018
Saudi Arabia’s economic recovery gathered steam in the third quarter on the back of higher oil prices and increased crude oil production.
December 24, 2018
Consumer prices fell 0.2% over the previous month in November, following October’s 0.3% decline.
Saudi Arabia: Government unveils an expansionary budget for 2019 despite the recent fall in oil prices
December 18, 2018
On 18 December Saudi Arabia presented its budget for 2019, which is the Kingdom’s largest ever in a bid to spur faltering economic growth.