Saudi Arabia Economic Outlook
March 6, 2018Volatility in financial markets, a strong U.S. dollar and surging oil production in the United States sent oil prices down in early February, threatening to derail the Kingdom’s economic recovery. Although oil prices are expected to remain relatively high this year compared to in 2017, Saudi authorities signaled that they will likely tap international bond markets for the third consecutive year in 2018, as early as March, to ease fiscal pressures. Meanwhile, Crown Prince Mohammed bin Salman continues to cement his political power following November’s massive crackdown on corruption that affected prominent businessmen, princes and top officials. On 26 February, the Saudi government announced that several top commanders had been removed, including the military chief of staff and the leaders of air and land forces.
Saudi Arabia Economic GrowthThe economy will benefit this year from higher oil prices compared to 2017 and strong global growth. Increased oil revenues will allow the government to adopt a more expansive fiscal stance. That said, persistent geopolitical threats and capped oil supply are expected to limit the economic recovery. FocusEconomics Consensus Forecast panelists expect growth of 1.6% in 2018, which is unchanged from last month’s projection. In 2019, growth is seen picking up pace to 2.3%.
Saudi Arabia Economy Data
5 years of Saudi Arabia economic forecasts for more than 30 economic indicators.
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Saudi Arabia Facts
|Bond Yield||2.49||0.0 %||Jun 23|
|Exchange Rate||3.75||0.0 %||Mar 15|
|Stock Market||0.2||1.00 %||Mar 15|
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Saudi Arabia Economic News
March 5, 2018
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by IHS Markit rose from January’s all-time low of 53.0 in January to 53.2 in February.
March 1, 2018
Heightened volatility in financial markets in early February interrupted the recent surge in oil prices, driving the price for the OPEC oil basket to its lowest level in over two months on 13 February.
February 26, 2018
Consumer prices jumped 3.9% from the previous month in January, contrasting December’s 0.1% drop and marking the strongest rise on record.
February 5, 2018
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by IHS Markit fell from 57.3 in December to 53.0 in January.
February 1, 2018
Despite a boom in U.S. shale oil supply, the continuing agreement between OPEC members to reduce production and strong global demand for the black gold have continued boosting oil prices, which rose in January to levels last seen in November 2014.