Research Briefing | Aug 13, 2021

MENA | Saudi Q2 GDP and budget deficit, Egypt inflation

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
Back to Resource Hub

Related Services

Post

Asia Pacific: China-India – are all growth stories built on infrastructure?
Find Out More

Post

Europe: Among major southern cities, Madrid looks strongest

We are cautiously optimistic about the medium-term outlook for Europe's cities as a whole, but less sanguine about southern European cities than most others. They have tended to underperform in the past and will probably do so in the future. Madrid, the largest, has the strongest growth prospects of the larger cities.

Find Out More