Tuesday 28 March 2023

Saudi economy stays strong with steady oil prices

RIYADH, 26 days ago

Saudi Arabia's economy continues to remain strong as Brent oil prices remain steady, averaging at $83.5/bbl in February, similar to January price levels ($84/bbl), said an Al Rajhi Capital Research report.
The consumer price index (CPI) came in at 3.4%, a marginal increase but healthy compared to global levels. The major driver behind this trend turned out to be housing rents, which accelerated substantially. This reflects a recovering property market, with prices specifically rising in the Riyadh region, it said. 
Non-oil activities are projected to become the key growth driver for the Saudi economy in 2023, as oil production is expected to consolidate. These activities demonstrated a solid expansion in 2022, growing by 6.2% year-over-year in Q4, and this trend is anticipated to continue into 2023.
Non-oil exports in December decreased by 24.4% y-o-y, compared to the decrease of 19.6% y-o-y in November. The decline in shipments was driven by transport equipment (-74.6% y-o-y), the report cited. 
The wholesale price index (WPI) increased by 3.6% y-o-y in January (3.0% y-o-y in December), driven by an increase in ‘Food & Beverages, Tobacco & Textiles (+7.6%). 
Index of industrial production (IIP)  increased (+7.3% y-o-y) in December, mainly due to an increase in manufacturing sectors’ activity (+18.5% y-o-y). 
Saudi Central Bank’s foreign reserves, on an annual basis, rose 2.4% in January as compared to a similar increase in December, to SR1,716 billion ($457.31 billion). -TradeArabia News Service


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