Economic updates
Our in-depth, independent reports cover the macroeconomic environment, the Saudi government’s annual budget, and Saudi Arabia’s monetary and financial developments, labor market, and inflation.
Macroeconomic update: Economic projections for 2014 revised up
Macroeconomic reportWe have revised some of our 2014 forecasts to take account of a recent flow of data that has generally been stronger than we had anticipated. With higher than expected year-to-date oil prices and output, we have revised up our forecast upwards for both. Higher public spending and robust credit growth should support non-oil growth with construction, transport, manufacturing and retail sectors in the lead. A slowdown in global growth and geopolitical tensions constitute key risks, though they are less acute and more evenly balanced than in recent years.
Inflation report (June 2014): Surprise decline in food inflation
According to the Central Department of Statistics and Information (CDSI), Saudi Arabias inflation rate remained unchanged at 2.7 percent, year-on-year, for the third consecutive month in June. Food prices surprised with a decline of 0.2 percent month-on-month, though this segment still remain the second largest contributor to annual inflation, after rental and housing related services.
Inflation report (March 2014): Headline CPI inflation continues to fall
Saudi Arabias inflation rate fell for the fourth consecutive month in March, reaching 2.6 percent year-on-year compared with 2.8 percent in the previous month. Lower food price inflation was the main reason for the decline, while rental inflation picked up slightly.
