Friday, June 21, 2024

The highest level for the non-oil sector in Saudi Arabia in 7 years … Strong recovery triggers the need for a new wave


The non-oil sector in Saudi Arabia grew by 4.5 points last September, the highest rate in seven years, as it eased restrictions imposed by the corona epidemic last year.
According to an economic survey by the Reuters and IHS Market Index, this growth is the strongest improvement in non-oil sector levels since August 2015.
The development of the private sector is a key feature of Vision 2030 of the Kingdom announced by Prince Mohammed bin Salman bin Abdulaziz, Prince, Deputy Prime Minister and Chairman of the Council for Economic and Development Affairs. The economy and its dependence on oil is low.
Private sector demand in Saudi Arabia soared to a seven-year high to support consumer demand last September, easing restrictions on operations and travel following a steady decline in the number of corona virus infections following the decision to reopen the economy. Increase in the proportion of people vaccinated in all parts of Saudi Arabia.
The season-adjusted IHS Market Saudi Arabia Purchasing Managers’ Index rose to 58.6 in September from 54.1 in September, more than 50 per cent separating growth from the contraction, with a 4.5 point increase indicating strong improvement in non-oil sector levels since August 2015.
Since May companies have increased their production at a higher rate, and new orders have risen, with its sub-index increasing by ten points on a monthly basis.
“After two consecutive months of downturn, the recent recovery shows that the economic recovery is strong, and easing epidemic controls will unleash a new demand,” said David Owen, an economist at IHS Market, who said optimism over demand pressures and growth activity will hire more companies in the last quarter of the year. “This year”.
Saudi Arabia expects economic growth of 2.6 percent this year and 7.5 percent in 2022, after a contraction of 4.1 percent last year, a record decline in the corona crisis and oil prices.

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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