The Saudi economy bounces after a 12-month contraction

The Saudi economy has been recovering in the first quarter of this year, after a 12-month decline, according to a report by Al Rajhi Capital. Al Rajhi Capital said in its July report that Saudi Arabia's GDP rose 1.2% in the first quarter of 2018, compared with a contraction of the same amount in the last quarter of 2017.

The report showed that growth was buoyant The oil sector grew 0.6% as a result of high crude oil prices in world markets, since the announcement of the US to withdraw from the deal Iran, in a climate of fears about the impact of the supply and supply of crude in the markets.

Al Rajhi noted that the performance of the Saudi economy in the first quarter of this year was also supported by the boom in the non-oil sector, driven by manufacturing, government services and services financials, registering growth of 1.6% year-on-year.

Al Rajhi reported that the activity of the construction sector is still suffering from a drop in the first quarter, reflecting the continued pressure on construction companies because most government spending has been directed to new services. His. The report concludes that sectors such as wholesale and retail trade, restaurants and hotels also experienced a contraction in the first quarter of 2018, following consumer reluctance to spend unnecessary items following the introduction of VAT. Apply fees for affiliates and affiliates. The kingdom 's overseas reserves grew 1.1% from year to year for the second time in a row, while tapering on an annualized basis, according to SAMA data. Monthly average of 0.4%.

Loans to the private sector continued to increase 0.4% from one year to the next, but remained unchanged on a monthly basis.

The World Bank increased its estimate of Saudi Arabia's gross domestic product (GDP) for 2018 to 1.8% from 1.2% in previous estimates, due to high oil revenues and additional government expenditures. From the Kingdom of Saudi Arabia for 2.1% in 2019.