Saudi Arabia Economic Outlook
March 10, 2020The economy grew a meager 0.3% in 2019 according to a preliminary figure, down from 2018’s 2.4% expansion. The oil sector contracted at the sharpest pace in a decade, whereas the non-oil sector accelerated robustly—due to strong gains from the finance and retail trade sectors. Turning to the first quarter of this year, the economy likely remains fragile. Oil production remained hamstrung in January, while the non-oil private sector PMI fell to a 22-month low in February, with the coronavirus fallout likely weighing heavily on manufacturing and tourism. In other news, on 6 March OPEC+ was unable to agree on a proposal for deeper and extended production cuts, due to lack of support from Russia, which has led to an all-out price war in recent days. In response, Saudi Arabia started discounting oil contracts by USD 6–8 per barrel and is also expected to ramp up production above the 10 million barrels per day mark next month.
Saudi Arabia Economic GrowthEconomic growth is seen accelerating this year, due to a recovery in oil production. Moreover, growth in non-oil activities should remain upbeat, but a more restrictive budget and the coronavirus will likely slow dynamics. FocusEconomics panelists estimate growth of 1.6% in 2020, which is down 0.2 percentage points from last month’s projection. In 2021, the panel sees growth at 2.1%.
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
March 6, 2020
Oil prices plunged over the past month, as markets continued to assess how the coronavirus outbreak was hitting the global economy and, in turn, oil demand.
March 3, 2020
The Purchasing Managers’ Index (PMI), produced by IHS Markit, moderated to 52.5 in February from 54.9 in January.
February 18, 2020
Consumer prices ticked down 0.1% over the previous month in January, contrasting December’s 0.1% increase.
February 7, 2020
Oil prices tumbled over the past month, as markets considered the impact that the recent outbreak of the coronavirus outbreak could have on the Chinese economy and, in turn, oil demand.
February 4, 2020
The Purchasing Managers’ Index (PMI), produced by IHS Markit, moderated from December’s 56.9 to 54.9 in January.