Saudi Arabia Macroeconomic Developments
- Saudi Arabia’s annual inflation rate reached 1.5 percent in June MoM, driven primarily by rising housing costs. The report from GAStat highlighted that the 8.4 percent increase in the prices of housing, water, and electricity, as well as gas, and other fuels significantly contributed to the rise.
- The wholesale prices inflation YoY in Saudi Arabia stood at 3.2 percent in June 2024, unchanged from the previous month, the lowest reading since February.
- The International Monetary Fund reduced Saudi Arabia’s GDP by nearly one percentage point from 2.6 percent to 1.7 percent for 2024, mainly due to oil production cuts. The revision was the biggest among major economies and dragged down the rest of the Middle East and North Africa region, which is projected to grow 2.2 percent this year, a downward revision of half a percentage point from three months ago.
