SAUDI ARABIAN MARKET
Saudi Arabia Macroeconomic Developments
• Saudi Arabia’s economy grew 1.2 percent in Q3 compared to the previous quarter. On a yearly basis, GDP declined 4.2 percent. The report by the General Authority for Statistics was the first quarterly flash GDP estimate issued by thecrown government in an effort to provide timely data to key decisionmakers. Further details on Q3 GDP and its subcomponents will be issued in a second release as data becomes available.
• Consumer prices in Saudi Arabia increased 5.8 percent YoY in October, slightly above last month’s level. Inflation mainly reflects the effect of the value-added tax (VAT) increase in July. Compared to a year earlier, food & beverages (+13 percent), communications (+11.4 percent), and transportation (+7 percent) were the main drivers of inflation while education services (-8.6 percent) and housing & utilities (-0.7 percent) declined. Prices ticked up 0.1 percent compared to September.
• Producer prices rose 5.7 percent YoY in October. In line with recent months, refined petroleum product prices (-19.1 percent) pulled the overall index down while most other categories, including agriculture and fishery products (+16.8 percent), metal products and machinery (+13.3 percent), food production (+12.4 percent), and minerals (+12.9 percent) saw double-digit price increases.
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