Following a tumultuous year for oil markets and international travel, Saudi Arabia’s economy returned to a growth footing in Q2 2021. The Saudi economy grew 1.8 percent YoY in Q2 on annualized basis with the non-oil sector growing at 8.4 percent. A robust recovery in global oil demand helped boost government revenues well beyond expected levels in the first half of the year. The Kingdom’s flagship crude grade, Arab Light, started the year around $50 per barrel and closed the second quarter at $74 as global trade and travel resumed.
Consequently, government revenues rose 39 percent YoY to reach SAR453 billion ($121 billion) while government expenditures inched down 0.9 percent YoY to SAR465 billion ($124 billion). Saudi Arabia’s fiscal deficit through H1 2021 is just 9 percent of the anticipated full-year total, indicating the government will likely exceed its target in cutting the fiscal deficit. Saudi Arabia’s GDP currently stands at SAR2.52 trillion ($672 billion), approximately 5 percent below pre-pandemic levels. The non-oil, private sector recovered faster than both the oil and government sectors and now stands above its pre-pandemic levels.
FULL REPORT CONTAINS:
- Oil Markets
- Saudi GDP through H1 2021
- Saudi Arabia Purchasing Managers’ Index through August 2021
- Government Budget through H1 2021
- Saudi Capital Markets
- Macroeconomic Outlook