Saudi Arabian money supply growth has picked up in latest data for the month of December “in a sign that the economy is regaining strength after a slump last year caused by low oil prices and government austerity measures,” Reuters reports, citing central bank data.
Key notes among the Central Bank data reported by Reuters:
Deputy Crown Prince Mohammed bin Salman.
-Annual growth in M3 money supply rose to 0.7 percent in December, the highest level since January 2016, from 0.1 percent in November
-The government’s deposits in its current account at the central bank rebounded by 44.8 billion riyals ($12 billion) to their highest level in 2016, “suggesting higher oil prices are helping Riyadh to replenish the account.”
-Net foreign assets at the central bank shrank by $1.9 billion from the previous month to $528.6 billion in December, their lowest level since November 2011.
-More active government spending on economic development projects was seen in a sharp drop in government deposits at the central bank allocated for such projects.
-Commercial bank lending to the private sector increased by just 2.4 percent in December from a year earlier, its slowest growth since March 2010. This was largely due to the resumption of payments by the government to contractors.
