Saudi economy news

Here are some recent news and updates on the Saudi economy:

Recent Developments:

  1. VAT Increase: Saudi Arabia has increased its Value-Added Tax (VAT) from 5% to 15% to help reduce its budget deficit. The increase took effect on July 1, 2020.
  2. Budget Deficit: The Saudi government has announced a budget deficit of SAR 153 billion (USD 40.5 billion) for the first half of 2020, due to lower oil prices and a decline in non-oil revenues.
  3. Economic Diversification: The Saudi government has launched several initiatives to diversify the economy, including the "Vision 2030" program, which aims to reduce the country's reliance on oil exports and increase foreign investment.
  4. Infrastructure Development: Saudi Arabia has announced plans to invest SAR 1.2 trillion (USD 320 billion) in infrastructure development over the next decade, including the construction of new cities, airports, and seaports.
  5. Tourism Sector: The Saudi government has launched a new tourism strategy, which aims to attract 100 million visitors by 2030 and generate SAR 100 billion (USD 26.7 billion) in tourism revenue.

Recent Economic Indicators:

  1. GDP Growth: Saudi Arabia's GDP growth rate slowed to 1.7% in the first quarter of 2020, down from 2.2% in the same period last year.
  2. Inflation Rate: The country's inflation rate rose to 2.5% in June 2020, up from 2.1% in the same month last year.
  3. Unemployment Rate: The Saudi unemployment rate stood at 12.6% in the first quarter of 2020, down from 13.1% in the same period last year.
  4. Foreign Exchange Reserves: Saudi Arabia's foreign exchange reserves stood at SAR 1.2 trillion (USD 320 billion) in June 2020, down from SAR 1.3 trillion (USD 347 billion) in the same month last year.

Outlook:

The Saudi economy is expected to face challenges in the short term due to the impact of the COVID-19 pandemic and lower oil prices. However, the government's efforts to diversify the economy and increase foreign investment are expected to support long-term growth.

Sources:

Please note that the information provided is subject to change and may not be up-to-date. It is always a good idea to check with reliable sources for the latest information on the Saudi economy.