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.
Monetary and Financial Update: Gradual Pickup in Private Sector Lending
Macroeconomic reportThe US Federal Reserve (Fed) raised the Federal Fund Rate (FFR) in December, and lowered its projections from three to two hikes in 2019. The latest survey data show that the market expects no further hikes in 2019. Therefore, we see a rising level of uncertainty in the Feds rate decisions in 2019, with a downside projection, as the Feds latest statement acknowledged the slowing in global growth.
The Saudi Economy in 2019
Macroeconomic reportJadwa Investments Saudi economy in 2019 report has forecasted 2 percent growth in the economy during the year. Latest full year GDP data for 2018 shows that the economy was able to absorb most of the disruptive effects of necessary economic reform enacted last year. Looking ahead, as comparably limited major reform is scheduled to take place during 2019, this should clear the way for a pick-up in momentum for the Saudi economy. Overall, whilst the oil sectors output will be partially trimmed by Saudi Arabias commitment to the OPEC and partners (OPEC+) agreement, the report forecasts a marginally higher year-on-year growth in the non-oil sector.
