Monday, January 5, 2015

Saudi Arabia GDP Improves in 2014

Saudi Arabia’s real GDP growth improved in 2014 as oil sector growth was higher than expected, while the non-oil sector continued its healthy expansion, a report said.

November data showed a rebound in consumer spending compared to the previous month, added the Saudi Chartbook 2015 released by Jadwa Investment , a leading Saudi investment group licensed by the Capital Market Authority , noting that the PMI (Purchasing Managers’ Index) slowed for the second consecutive month.

Key observations in the report:

Monetary indicators: Month-on-month bank lending to private sector declined for the first time since December 2011 .

Inflation: Inflation further cooled off during November as both the food and housing components slowed.

Balance of payments: The current account surplus fell in the third quarter owing to a record high deficit in the services account.

Oil –Global: Brent crude oil fell to a five and half year low below $57 per barrel in December as ample global supply outweighed lost production from Libya . WTI came under pressure as both U.S crude and gasoline stocks surged, month-on-month.

Oil –Regional: Saudi crude production declined slightly, month-on-month, in November. Libyan production declined once more as internal conflict in the country resurfaced.

via Kitco

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