FXstreet.com (San Francisco) - According to Middle Eastern Economist Said Hirsh at Capital Economics, “The slowdown in Saudi Arabia’s annual GDP growth rate from 5.9% in Q1 to 5.5% in the second quarter was primarily due to the fact that both the oil and government sectors slowed sharply.”
Meanwhile, the private sector remained stable, “however this is likely to weaken over the coming months as well.” Hirsh notes.
Breaking down the sectors, the performance of the non-oil government sector continued to disappoint in Q2. Recent data show that the non-oil government sector grew by 3.6% YoY – down from 4.2% YoY in Q1. This helps to explain the drop in our own activity proxy for the non-oil sector.
Meanwhile, the private sector remained stable, “however this is likely to weaken over the coming months as well.” Hirsh notes.
Breaking down the sectors, the performance of the non-oil government sector continued to disappoint in Q2. Recent data show that the non-oil government sector grew by 3.6% YoY – down from 4.2% YoY in Q1. This helps to explain the drop in our own activity proxy for the non-oil sector.
