Saudi Arabia Macroeconomic Developments
- Saudi Arabia’s private sector GDP expanded 4.4 percent in Q1 2021, according to the General Authority for Statistics (GAStat). Overall GDP declined 3 percent on weaker oil demand while the non-oil sector grew 2.9 percent. The fastest growing non-oil sectors in Q1 were manufacturing (excluding petroleum refining) which grew 8.9 percent YoY and real estate which grew 6.6 percent YoY.
- Saudi Arabia’s economy is expected to grow 2.4 percent in 2021 and 3.3 percent in 2022, according to the World Bank. The Bank raised its economic forecasts for Saudi Arabia from 2 percent and 2.2 percent in 2021 and 2022, respectively. The recovery in oil markets paired with new government investment programs boosted the Bank’s outlook for Saudi Arabia’s near-term economic growth.
- The value of Saudi real estate transactions grew 167 percent YoY to SAR15.1 billion ($4 billion) in April-May 2021, according to the Ministry of Justice. However, on a monthly basis, the value of deals declined 35 percent from a record high SAR23.3 billion ($6.2 billion) during March-April 2021.
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