Saudi economy stays strong with steady oil prices
RIYADH, March 1, 2023
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
