Jadwa Investment’s June 2015 Saudi Chartbook, a detailed look at key economic performance data for the Kingdom’s economy, finds negative net monthly change to government accounts, slowing bank credit to the private sector reaching year-on-year growth is at its lowest in four years, and falling bank deposits.
However, following seven months of slowdown, inflation remained unchanged for April 2015, and the Purchasing Managers Index (PMI), a measure of private sector and manufacturing performance, continued to point to a healthy expansion in the non-oil private sector.
Inflation remained steady after a seven month fall. Graphic courtesy of Jadwa Investment.
Additionally, non-oil exports ticked up following three consecutive monthly declines, while non-oil export volumes recorded its highest level in twelve months, Jadwa finds.
A strong dollar and low oil prices, as well as high spending by the Government, has led to a decrease in SAMA’s net assets. The Kingdom’s current account surplus fell to $81.2 billion in 2014. In April, net government accounts at SAMA declined for the sixth consecutive month, falling by $14.3 billion, month-on-month, according to Jadwa.
Foreign reserves declined for the third consecutive month, falling by $11.6 billion to reach $683 billion in April.
[Click here to view the June 2015 Saudi Chartbook from Jadwa Investment]
