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
June 2, 2022
The OPEC oil basket traded at USD 113.9 per barrel on average in May, up 7.7% from the prior month.
May 15, 2022
Consumer prices rose 0.43% in April over the previous month, accelerating from the 0.27% rise logged in March.
May 9, 2022
The Purchasing Managers’ Index (PMI), produced by S&P Global, fell to 57.7 in April (March: 56.8).
May 1, 2022
A flash estimate showed that the economy grew 9.6% on an annual basis in the first quarter of 2022, after expanding 6.7% in the fourth quarter of 2021. The improved performance was due to a stronger expansion of the oil sector, which grew 20.4% in Q1 2022 compared to 10.9% in Q4 2021.
May 1, 2022
The OPEC oil basket traded at USD 105.8 per barrel on average in April, down 6.8% from the prior month.