Saudi Arabia Macroeconomic Developments
- Saudi Arabia resumed international travel on May 17 for the first time in more than a year. Vaccinated Saudi citizens are permitted to travel while foreigners from 20 countries, including the U.S., will remain exempt from travelling to the Kingdom. The government announced COVID-19 vaccinations will be required for individuals planning to attend any public event after August 1.
- Saudi Arabia’s inflation rate rose to 5.3 percent YoY in April, according to the General Authority for Statistics (GAStat). The yearly figure continues to reflect the effect of the value-added tax (VAT) increase from last July. On a monthly basis, prices rose 0.2 percent amid higher food prices (+0.4 percent).
- Wholesale prices rose 13.2 percent YoY and 2.2 percent MoM in April as industrial inputs such as basic chemicals and metals continue to rise. On a yearly basis, ‘basic chemicals’ rose 28.4 percent followed by ‘metal products, machinery, and equipment’ (+16.5 percent) and ‘food products, beverages, tobacco, and textiles’ (+10.3 percent).