Saudi Arabia Economic Outlook
May 7, 2019Economic growth likely decelerated sharply in Q1 2019 as Saudi Arabia continued to over-deliver on its oil productions cuts. In March, the Kingdom pumped below 10 million barrels per day for the first time in nearly one year. On the upside, activity in the non-oil sector gained steam in the first three months of the year due to solid new domestic orders and output. Moreover, credit growth reached an over two-year high in March. However, this was largely fueled by soaring loans to the public sector as well as in oil and construction activities, while the apparent improvement in the non-oil economy and the ban on expats in certain jobs have not yet translated into gains in the labor market for Saudis. Looking forward, the U.S. decision to end the waivers on Iranian oil exports will likely exert upward pressure on oil prices and should also allow the Saudi oil industry to ramp up production.
Saudi Arabia Economic GrowthReduced oil production in compliance with the OPEC+ deal will cause economic growth to lose steam this year. However, stronger public spending and government initiatives to foster non-hydrocarbon activities should buttress the economy. Moreover, the rally in oil prices bodes well for economic activity. FocusEconomics panelists expect growth of 1.7% in 2019, which is down 0.1 percentage points from last month’s projection, and 2.1% in 2020.
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Saudi Arabia Facts
|Bond Yield||2.49||0.0 %||Jun 23|
|Exchange Rate||3.75||0.0 %||May 13|
|Stock Market||0.2||1.00 %||May 13|
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Saudi Arabia Economic News
May 5, 2019
The Purchasing Managers’ Index (PMI), sponsored by Emirates NBD and produced by IHS Markit, was unchanged at March’s 56.8 in April.
May 3, 2019
Oil prices continued to climb in recent weeks on supply side concerns following the U.S. decision to end Iranian oil waivers and the strong compliance to the oil deal by OPEC and key non-OPEC members.
April 24, 2019
Consumer prices fell 0.1% over the previous month in March, following February’s 0.2% decline.
April 7, 2019
The Purchasing Managers’ Index (PMI), sponsored by Emirates NBD and produced by IHS Markit, rose from 56.6 in February to 56.8 in March.
April 1, 2019
Saudi Arabia’s economy expanded at the fastest pace in three years in the fourth quarter of 2018 on the back of increased oil supply.