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.
The Saudi Economy in 2019
Macroeconomic reportJadwa Investments Saudi economy in 2019 report has forecasted 2 percent growth in the economy during the year. Latest full year GDP data for 2018 shows that the economy was able to absorb most of the disruptive effects of necessary economic reform enacted last year. Looking ahead, as comparably limited major reform is scheduled to take place during 2019, this should clear the way for a pick-up in momentum for the Saudi economy. Overall, whilst the oil sectors output will be partially trimmed by Saudi Arabias commitment to the OPEC and partners (OPEC+) agreement, the report forecasts a marginally higher year-on-year growth in the non-oil sector.
2019 Saudi Fiscal Budget
Budget reportAs outlined in the first ever preliminary fiscal budget in September, the government will support the economy through the largest ever budgeted expenditure of SR1.1 trillion in 2019. Based on revenues of SR975 billion, the government is budgeting for a slightly lower year-on-year deficit at SR131 billion, compared to SR136 billion in 2018.
Monetary and Financial Update: A slow recovery in private sector lending
Macroeconomic reportThe US Federal Reserve (Fed) raised the Federal Fund Rate (FFR) in September, and is highly expected to raise it one more time this year, lifting the probability from three to four hikes in 2018, in addition to at least two more hikes expected in H1 2019.
