The latest quarterly GDP update on the Saudi economy from Jadwa Investment finds year-on-year growth continued to slow for the fourth consecutive quarter, “mainly owing to a deceleration in annual GDP growth for both the oil sector and the non-oil private sector.”
However, in real terms, the Saudi economy was 1.4 percent larger in the second quarter of 2016 than in the same quarter of 2015, the Riyadh-based bank said. Annual growth in non-oil government sector GDP turned positive following two consecutive quarterly contractions.
Additional observations from the Jadwa Investment report:
-Within the non-oil private economy, transport and finance were the fastest growing sectors in Q2.
-While utilities, construction, wholesale & retail, and non-oil manufacturing all saw negative annual growth for the second consecutive quarter.
-We expect continued growth in oil production during the second half of 2016, while the slowdown in non-oil GDP will moderate.
-We revised our 2016 full-year GDP forecast to 1.1 percent, down from our earlier forecast of 1.7 percent.
For more detailed commentary and statistical analysis, click here to read the full report from Jadwa Investment.
