Recent data on Saudi Arabia’s economy showed a mixed picture for the Kingdom, with non-oil PMI trending lower in March, month-on-month, while remaining in expansionary mode, according to Jadwa Investment and official government figures.
The slowdown came as new export orders declined for the first time in six months.
Meanwhile, consumer spending bounced back in March, as POS transactions rose by 65 percent year-on-year, “boosted by a lower base as a result of lockdowns imposed in March of last year,” Jadwa notes.
Saudi Arabia’s foreign reserves increased by 1.7 percent month over month in March to SR1.683 trillion ($448.9 billion), while that figure stood at 5% lower than the same month in 2020. Investments in foreign securities edged up 0.2 percent month over month to SR1.124 trillion ($300 billion), while foreign exchange and deposits abroad rose 5.7 percent to SR513.6 billion ($137 billion).
Saudi Arabian banks issued 31,826 mortgages in March 2021 worth a record SR16.95 billion ($4.5 billion), an increase of 56 percent from the same period in 2020, according to the country’s central bank. The encouraging figures are good news for authorities, who have set a goal for Saudi Arabia to reach 70 percent home ownership by 2030.
On inflation, prices in March rose by 4.9 percent year-on-year, but remained essentially flat on a monthly basis, Jadwa said. “Looking ahead, we expect lower pre-VAT base effects from last year and a continued pick up in economic activity to keep prices at elevated levels in the next couple of months.”
[Click here to read the full report from Jadwa Investment] [Arabic]
