MENA | Saudi Q2 GDP and budget deficit, Egypt inflation
Saudi Arabia’s GDP rose 1.5% y/y in Q2 according to the flash estimate. This was mainly driven by a boost from non-oil activity, which increased 10.1% y/y (1.3% q/q growth), but the oil sector also strengthened due to higher oil prices and production.
The Saudi budget deficit narrowed to an estimated 0.6% of GDP in Q2 on the back of higher oil prices and a surge in tax revenues. According to the finance ministry, oil revenues rose 38% y/y, while non-oil revenues tripled to SAR116bn reflecting the effect of the tripling of VAT in July last year.
What you will learn:
- Saudi GDP rose 1.5% y/y in Q2 on the back of 10.1% growth in the non-oil sector
- Saudi budget deficit narrowed in Q2 due to higher oil prices and a boost to tax revenues
- Egypt’s inflation hits a seven-month high of due to electricity, tobacco and food price hikes
Sterling’s woes, Kwarteng’s vows, Bailey in the middle
The negative market reaction to last week's fiscal announcements appears to be a function of doubts over the credibility of the UK government's long-term fiscal plans. Though we think the structural position is not as bad as last Friday's drop in asset prices implies, it's clear the government will struggle to retain credibility if it fails to engage with market concerns.Find Out More
BoJ to look through a temporary decline in monetary base
The Bank of Japan (BoJ) left monetary policy unchanged at today's (22nd Sep) meeting, maintaining current short- and long-term interest rates, despite another wave of yen weakening and upward pressures on JGB yields.Find Out More