Saudi real GDP up 3.9% YOY in Q2
Key highlights from the outlook include:
Saudi Arabia's Q2 headline real GDP growth is largely in line with S&P Global Market Intelligence expectations. We think that economic momentum will strengthen further in the coming quarters, driven by ramped up oil output in line with OPEC+ decisions and continued strong momentum in the non-oil economy.
In our July forecasting round, we penciled in an acceleration of real GDP growth to 4.8% in 2025 from 2.0% in 2024, driven by higher domestic demand and rising real exports. Consumer spending is likely to remain the growth-driving force on the demand side in 2025. Private fixed investment is unlikely to markedly accelerate, while public-sector investment is dampened as the Saudi government seeks to keep the fiscal deficit in check.
To speak with our experts, please contact me on the details below or press.mi@spglobal.com.
*Please note: This was produced by S&P Global Market Intelligence, not S&P Global Ratings, which is a separately managed division of S&P Global.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
16 minutes ago
- The National
Jordan has slump in visitors to Petra during Gaza war
Jordan has had a sharp drop in visitors to its ancient city of Petra and other sites since war broke out in Gaza almost two years ago, it was revealed on Monday. Figures released by the Petra Development and Tourism Region Authority show visitors dropping from almost 1.2 million in 2023 to fewer than 460,000 last year – a decrease of about 61 per cent. "We feel the repercussions of the aggression on Gaza every day, especially for providers of tourism services," Abdul Razzaq Arabiyat, the director of the national tourism board, told TV channel Al Mamlaka. Mr Arabiyat said tourism from Europe and North America has hit a record low, dealing a devastating blow to the hotel industry and tour operators around Petra, in Jordan's south. According to figures from the Petra tourism authority carried by official media, 32 hotels have had to shut down and almost 700 people have lost their jobs. Although Jordan does not share a border with Gaza, it is among many countries across the Middle East affected by the war between Israel and Hamas. The kingdom has worked with the UAE to fly food into Gaza and sought to use its diplomatic influence to bring about a ceasefire. Petra, famous for its stunning temples hewn from rose-pink cliff faces, is a Unesco world heritage site. The Jordanian economy relies on revenues from the kingdom's tourism sector, which accounts for 14 per cent of gross domestic product. Jordan's tourism board had hoped to keep numbers steady from a pre-war figure of 5.4 million visitors a year across the country. Mr Arabiyat told The National in May 2024 that "we need to at least maintain this number this year, and we hope it will not decrease". Last August, it was revealed that Middle East plane tickets issued in a 10-day period during the height of summer were seven per cent down year on year, with Jordan and Lebanon suffering the biggest drops.
The National
2 hours ago
- The National
New four-lane tunnel opens in Dubai to ease traffic
An 800-metre tunnel with four lanes in each direction has opened in Dubai as part of a project to ease traffic flow in the city. The tunnel extends from the junction with Al Khail Road to the intersection with Sheikh Mohammed bin Zayed Road as part of the Umm Suqeim Street development project. The project is part of plans by Dubai's Roads and Transport Authority (RTA) to ease the flow of traffic and improve the road infrastructure in the emirate. 'The Umm Suqeim Street development project extends from the intersection with Al Khail Road to the intersection with Sheikh Mohamed bin Zayed Road, covering a distance of 4.6km," said Mattar Al Tayer, RTA director general, on Sunday. "The works included upgrading the intersection of Umm Suqeim Street with Al Barsha South Street, near Kings' School, where an 800-metre-long underpass with four lanes in each direction was constructed, in addition to a signalised surface-level intersection. "This development is considered one of the most important strategic projects for developing transverse east-west roads to enhance connectivity with vertical north-south roads. The completion of the project complements RTA's efforts to upgrade this corridor." The tunnel is part of plans to develop the Umm Suqeim-Al Qudra corridor, which extends from the intersection with Jumeirah Street to the junction with Emirates Road, spanning a total of 16km.
The National
2 hours ago
- The National
10,000 rials to 1: Iran poised to knock four zeroes off currency
Iran has moved a step closer to knocking four zeroes off its currency, after economic woes pushed the value of one US dollar to almost a million rials. The change would mean 10,000 rials become one, making trading simpler. It was backed by an economic commission of Iran's parliament on Sunday, but still needs approval from higher authorities. The commission also backed keeping the name rial instead of changing it to one toman - which currently refers to 10 rials. The redenomination was first mooted in 2019 but then shelved. Iran's central bank governor Mohammad Reza Farzin said he would pursue the plan in May. He said the Iranian rial "does not have a favourable image" in the global economy. The move comes as Iran faces deepening economic challenges, including runaway inflation, a sharply devalued currency, and the prolonged impact of sanctions on Tehran. US President Donald Trump has reinstated a policy of "maximum pressure" on Iran, which also suffered heavy damage during a 12-day war with Israel in June. As of Sunday, the rial was trading at around 920,000 to the US dollar on the street market, according to local media and a website called Bonbast that monitors unofficial exchange rates. Turkey knocked six zeroes off its currency, the lira, in 2005, after years of high inflation. Zimbabwe once removed 10 zeros, turning 10 billion dollars into one after hyper-inflation ravaged the economy. In June, Iranian lawmakers approved new economy minister Ali Madanizadeh after his predecessor, Abdolnaser Hemmati, was ousted in a no-confidence vote for failing to address the country's economic woes. The current bill will have to pass a parliamentary vote and gain the approval of the Guardian Council, a body empowered to vet legislation. It wasn't clear when that would happen.
