Saudi Arabia’s gross domestic product (GDP) rose 1.8% y-o-y in the second quarter (Q2) of 2021 as compared to a contraction of 3% year-on-year (y-o-y) in Q1 2021, a report said, citing estimates of the General Authority for Statistics.
Article continues below
This increase was supported by increase in oil sector (+8.4% y-o-y in Q2 2021 Vs +2.9% in Q1 2021), said Al Rajhi Capital, a leading financial services provider in the kingdom, noting that the non oil sector declined (-6.9% y-o-y in Q2 2021 Vs -11.7% y-o-y in Q1 2021).
Money Supply (M3) continued to grow in August 2021 (+7.9% y-o-y) to stand at SR2.239 billion ($596 million); while M1 and M2 increased 5.7% y-o-y and 5.2% y-o-y, respectively. As per the weekly money supply data by Saudi Central Bank, M3 may be lower in September 2021 than in the month of August.
Credit to the private sector witnessed a growth of 15.7% y-o-y (+0.8% m-o-m) in August 2021; while bank claims on public sector advanced 10.4% y-o-y (+2.8% m-o-m) in the same month. Meanwhile, deposits rose 8.9% y-o-y (-0.4% m-o-m) in August 2021 (Figure 5, 6, 7 & 8).
Banking sector net profit before Zakat and tax advanced 27.2% y-o-y to SR5.41 billion in August 2021. Further, on a monthly basis, the banking sector profits increased by 43.8% m-o-m in August 2021 (Figure 11 & 12).
Mortgage increased 31.7% y-o-y (+54.7% m-o-m) to SR12.9 billion in August 2021. Mortgage growth assisted overall loan growth of +1% m-o-m and +14% y-o-y. Mortgage run-rate for 2021 now stands at SR12.3 billion; 2020 Mortgage run rate was SR11.3 billion.
Saudi Central Bank’s foreign reserves, on an annual basis, rose 0.3% in August 2021 versus a decline of 1.4% y-o-y in July 2021. Further, the reserves increased 3.0% m-o-m in August 2021 (-1.0% m-o-m in July) (Figure 13 & 14). Meanwhile, as of August 2021, government reserves with Saudi Central Bank stood at SR426.948 billion (including government current account), a monthly decline of 3.1%.
Index of Industrial Production (IIP) increased 4.3% m-o-m ( +5.9% y-o-y) in July 2021, mainly due to increase in mining and quarrying activity (+6.1% m-o-m) and electricity and gas sectors activity (+7.9% m-o-m). However, non-oil manufacturing activity saw m-o-m decline of 2.3%.
Cost of living index increased 0.3% y-o-y in August 2021 as compared to 0.4% y-o-y in July 2021. The increase in CPI is mainly originated from higher prices of ‘Transport’ (+6.5% y-o-y) and ‘Food and Beverages’ (+1.9% y-o-y).
The increase in ‘Transport’ prices was mainly due to the increase in operating of personal transport equipment prices (+21.9%), which in turn was resulted by the rise in prices of fuels and lubricants (+44.3%). Further, the rise in ‘Food & Beverages’ was mainly due to the increase in food prices (+2.0%). On a monthly basis, the CPI rose 0.1% in August (+0.2% m-o-m in July). ■
A hyperactive weather pattern will bring an expansive low pressure system across mainland U.S., resulting in widespread impactful weather to progress from west to east across the country through the next few days.