Saudi Arabia GDP Improves in 2014

Saudi Arabia’s real GDP growth improved in 2014 as oil sector growth was higher than expected, while the non-oil sector continued its healthy expansion, a report said.

November data showed a rebound in consumer spending compared to the previous month, added the Saudi Chartbook 2015 released by Jadwa Investment , a leading Saudi investment group licensed by the Capital Market Authority , noting that the PMI (Purchasing Managers’ Index) slowed for the second consecutive month.

Key observations in the report:

Monetary indicators: Month-on-month bank lending to private sector declined for the first time since December 2011 .

Inflation: Inflation further cooled off during November as both the food and housing components slowed.

Balance of payments: The current account surplus fell in the third quarter owing to a record high deficit in the services account.

Oil –Global: Brent crude oil fell to a five and half year low below $57 per barrel in December as ample global supply outweighed lost production from Libya . WTI came under pressure as both U.S crude and gasoline stocks surged, month-on-month.

Oil –Regional: Saudi crude production declined slightly, month-on-month, in November. Libyan production declined once more as internal conflict in the country resurfaced.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza