Economic updates
Our in-depth, independent reports cover the macroeconomic environment, the Saudi government’s annual budget, and Saudi Arabia’s monetary and financial developments, labor market, and inflation.
Monetary and Financial Update June 2021
Macroeconomic reportMonetary and Financial Update June 2021
Monetary and Financial Update: Ample levels of liquidity
Macroeconomic reportThe US Federal Reserve (Fed) kept the Federal Fund Rate (FFR) steady at a range between 0 to 0.25 percent since the early days of the pandemic in March 2020. In a meeting last week, the Fed outlined that it now expects to see interest rates rising earlier than previously anticipated, with two hikes expected in 2023.
The Saudi Economy in 2021
Macroeconomic reportLooking out into 2021, while there is still a considerable degree of uncertainty as a result of the prevalence of COVID-19 and its potential impact on the non-oil economy, we nevertheless expect a broad-based recovery. Our forecast assumes between 15-20 percent of the adult population being vaccinated against COVID-19 by mid-2021, and 70 percent by year end. As such, we see a quarter-on-quarter improvement in the Saudi non-oil economy, with this recovery being more vigorous in the second half of 2021.
Update on the Financial Sector Development Program
Macroeconomic reportIn the last year or so, there has been a fair level of progress on most areas covered by the Financial Sector Development Program (FSDP). In particular, visible progress has been made in the development of the SMEs financing ecosystem, the insurance sector, capital markets and housing.
