Jadwa prospects Saudi economy to grow 1.8% in 2021

Jadwa Investment Company revealed its forecasts that the Saudi economy will grow by 1.8% during the current year 2021, expecting a slight decrease in the total oil sector’s output on an annual basis, by 0.7%, compared to 3.5% growth in the non-oil sector.

Jadwa also said that that the Saudi economy had grown by 1.8% on an annual basis by the end of the second quarter of the current year, and that there had been a significant decline in the oil sector, by 6.9%, compared to a growth in the non-oil sector of 8.4%.

“The Saudi economy contracted by 0.7% during the first half of the current year, as a result of a 9.3% contraction in the oil sector and 5.4% growth in the non-oil sector.” it added.

According to Jadwa, the non-oil Purchasing Managers’ Index (PMI) declined again in August, on a monthly basis, as a result of a slowdown in production and new orders during the month.

However, the index remained in the growth zone, at more than 50 points, and consumer spending rose in August, with an annual rise of 31.5%, in Point of Sales (POS) transactions was more than enough to offset a 2.6% decline in cash withdrawals from ATMs.

The industrial sector had approved investments worth SR4 billion in August to establish new plants.

The sector has also seen the employment of 7.6 thousand new workers, including approximately 3 thousand Saudis. The net change in government accounts with SAMA declined by about SR13.5 billion in August.

SAMA’s foreign asset reserves increased in August by about $13.3 billion on a monthly basis, recording the largest monthly increase since March 2019 to a total of approximately $455 billion.

Based on the details of the reserve, that most of the monthly rise came from an increase in the Special drawing rights (SDRs).