Saudi Arabia Economic Outlook
October 29, 2019Oil production cuts in compliance with the OPEC+ oil deal and lower prices for the black gold led GDP growth to slow to the lowest rate in over one year in the second quarter. On the upside, the private sector continued to benefit from the government’s pro-growth policies. Looking at the third quarter, the trend should have been broadly similar as in the previous quarter. Saudi Arabia pumped less oil in Q3 2019 compared to the same quarter in 2018, especially in September, when oil production plummeted in the aftermath of a drone attack on Saudi oil facilities. Moreover, oil prices remained subdued in the same quarter. Conversely, the non-oil PMI continued to strengthen compared to the previous year in Q3, boding well for private business activity. On 17 October, Aramco delayed the planned launch of its initial public offering (IPO) as the government is struggling to meet the planned valuation of the company.
Saudi Arabia Economic GrowthThe economy will regain some momentum in 2020 following the expected slowdown for 2019, which is driven by deep oil production cuts. The country should benefit from stronger oil production if the OPEC+ deal expires as planned. However, a large fiscal deficit could prompt authorities to moderate public spending, while an uncertain global outlook could dampen demand for oil. FocusEconomics panelists expect growth of 2.1% in 2020, which is down 0.1 percentage points from last month’s projection. In 2021, the panel also 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 %||Sep 04|
|Stock Market||0.2||1.00 %||Sep 04|
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Saudi Arabia Economic News
November 22, 2019
Oil prices steadily increased in recent weeks, supported by optimism linked to talks of a “phase one” trade deal between China and the United States, as well as expectations that OPEC+ production cuts will be extended.
November 19, 2019
Consumer prices rose 0.2% over the previous month in October, matching September’s result.
November 5, 2019
The Purchasing Managers’ Index (PMI), produced by IHS Markit, jumped from September’s 57.3 to 57.8 in October.
October 27, 2019
Consumer prices rose 0.2% over the previous month in September, above August’s 0.1% increase.
October 24, 2019
Oil prices declined in the second half of September and the first days of October as Saudi Arabia gradually restored crude oil output following the 14 September drone strike on the Kingdom’s oil facilities.