Saudi Arabia saw an increase in unemployment and an uptick in inflation in recent months as the Kingdom seeks a pathway toward economic recovery following a period of low oil prices and the global Coronavirus pandemic, according to the most recent chartbook from Jadwa Investment.
The non-oil PMI in Saudi Arabia declined in August, after registering the highest figure in six months during July. Meanwhile, cement sales and production continued to rise. On the consumer spending front, POS transactions rose by 31 percent year-on-year in August, but declined by 1.2 percent month-on-month, Jadwa finds.
SAMA FX reserves increased by $5.5 billion month-on-month in August, to stand at $453.4 billion.
Prices in the Kingdom in August rose by 6.2 percent year-on-year, and by 0.2 percent month-on-month, boosted mainly by annual and monthly rises in food and beverages and transportation. Meanwhile, the Saudi unemployment rate rose in Q2 2020, to reach 15.4 percent, up from 11.8 percent in Q1 2020.
Data on Q2 2020 real GDP showed that the economy contracted by 7 percent, year-on-year.
The government’s preliminary budget statement revised 2020 numbers but kept 2021-22 forecasts virtually unchanged compared to last year’s budget statement.
[Click here to read the full report from Jadwa Investment] [Arabic]
