Saudi Arabia’s non-oil economy reaches the highest level in four years

Saudi Arabia’s non-oil economy reaches the highest level in four years
Saudi Arabia’s non-oil economy reaches the highest level in four years

Saudi Arabia's non-oil economy, especially private sector, grew inOctober at the fastest rate since August 2015 as new activities increased attheir highest pace in four months, a survey showed on Tuesday.

Adjusted HIS Markit's Purchasing Managers Index (PMI) rose in SaudiArabia, in light of seasonal factors to 57.8 in October from 57.3 in September,any reading above the 50-level known to indicate growth

The results suggest that Abqaiq–Khurais attack on two Saudi oilfacilities in September did not affect the wider economy.

Production continued to accelerate, expanding at the fastest ratein 22 months, supported by higher demand, which is considered the main sourceof growth from the domestic market.

Growth this year rose to its highest level since 2018 due to fuelprice increases and the introduction of a 5 percent VAT.

Amritsal Verdi, an economist at HIS said: "At current levels, thePMI indicates GDP growth at an annual rate of around 4%, which will mark a significantacceleration in growth since the beginning of 2019".

Riyadh expects a real GDP growth of 0.9 this year as oil productioncuts limit the rise of the non-oil economy.

According to the survey, employment in Saudi Arabia's non-oileconomy continued to grow in October, but at a modest pace.

Verdi added that employment slowed down from September as companiesremained cautious about recruiting additional staff.

Average prices in October fell at the fastest rate since April assurvey participants announced price cuts to attract customers.

Related Stories

No stories found.
Ajel
english.ajel.sa