Saudi Arabia Macroeconomic Developments
- Consumer prices in Saudi Arabia rose 1.2 percent YoY, picking up slightly from last month’s 1.1 percent. Key inflation pressures included transportation prices (+7.2 percent), vegetable produce (+6.3 percent), and education (+5 percent). Wholesale inflation meanwhile jumped 13 percent as prices rose broadly across chemicals (+91 percent), refined petroleum products (+29 percent), machinery (+9 percent), and minerals (+4 percent).
- The World Bank raised Saudi Arabia’s 2022 growth forecast from 3.3 percent to 4.9 percent while downgrading its 2023 forecast from 3.2 percent to 2.3 percent. The change reflects the strength of oil market trends and the expectation for a faster pickup in both oil and non-oil growth this year.
- Venture capital investment in Saudi Arabia grew 270 percent to SAR2.1 billion ($548 million), according to a recent report by Magnitt and Saudi Venture Capital Company (SVCC). Saudi Arabia passed Egypt to reach the second rank among MENA countries, behind the U.A.E. The Kingdom saw 139 venture deals signed, including its first investment round exceeding $100 million.