Saudi Arabia Macroeconomic Developments
- Saudi Arabia’s non-oil private sector continued its growth momentum as the Kingdom’s Purchasing Managers’ Index (PMI) hit 56.6 points in August. However, the PMI dipped slightly in August after securing a PMI of 57.7 points in July. The report noted that the rate of expansion in new business inflows eased, slowing for the second month running from June’s multi-year high.
- The International Monetary Fund (IMF) expects GDP growth in Saudi Arabia to slow to 1.9 percent reflecting the latest extension of oil production cuts. Saudi Arabia’s economy grew 8.7 percent last year on the back of high oil prices, allowing it to record its first budget surplus in almost a decade.
- Saudi Arabia’s real GDP recorded a 1.2 percent YoY growth in the second quarter of 2023, thanks to a 6.1 percent surge in the non-oil sector. The non-oil sector grew by 1.6 percent QoQ. However, real GDP decreased 0.2 percent QoQ.
