Kingdoms central bank sees it slowing to 2.8 per cent this year
The non-oil gross domestic product of Saudi Arabia, the biggest Gulf economy, is expected to slow to 2.8 per cent in this year from 3.4 per cent in 2015, according to kingdoms central bank governor Ahmed al-Kholifey.
The central bank, he said, continues to monitor key economic indicators, news agency Reuters cited al-Kholifeys interview with the state television station Ekhbariya. The point-of-sale aggregate, an indicator of consumption, rose 15 per cent year-on-year in May and a rebound of oil prices over the past few months had helped to support growth somewhat, he added.
Responding to a question about Saudi monetary policy and economic growth given global financial market turmoil caused by Britains decision to leave the European Union, he reiterated the stance that Brexit would not have much impact on Saudi financial institutions because of their limited exposure to Britain and their healthy asset quality.
Only two of the six members of GCC economic bloc have so far said they expect little impact of Britans decision to move out of the European Union. UAE central bank on 26 June said it doesnt expect its banking system to be affected singnificantly either by Brexit, which pushed the British pound to lowest level in decades and triggered a global equity markets route, particularly hammering shares of financial institutions with heavy presence in the UK.
You might also like...
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.