The partial easing of lockdown restrictions in May was reflected in some economic indicators during the month, Jadwa Investment reports in its latest economic chartbook for that month.
The non-oil PMI remained in contractionary territory, although it rose to 48.1 in May, up from its lower levels in March and April. POS transactions were down by 15.7 percent year-on-year.
Although data from Q1 2020 showed non-oil GDP rose by 1.6 percent, the economy contracted by 1 percent, year-on-year. The oil sector declined by 4.6 percent, according to Jadwa.
The Kingdom’s economy began easing its lockdown in late May, but only at a phased re-opening. Most of the Kingdom is now fully opened again for economic activity while the government works to prevent the further spread of the Coronavirus.
The lockdown has driven higher demand – and thus higher prices – for the food and beverage sector in the Kingdom. Prices rose by 4.9 percent in the year-to-May, driven by higher local household consumption of food products during the lockdown, as well as higher consumption usually associated with the holy month of Ramadan, Jadwa said in a separate update on inflation.
Jadwa also noted that SAMA FX reserves rose marginally month-on-month in May, with a rise of $0.7 billion, following a 3-month decline by $53 billion.
[Click here to read Jadwa Investment’s July 2020 economic chartbook] [Arabic]
[Click here to read Jadwa Investment’s inflation update for the month of May] [Arabic]
