Oil sector drives sharp Q2 slowdown in Saudi Arabia

The Saudi Arabian economy slowed sharply between Q1 and Q2, largely due to weakness in the oil sector. The data also provided further signs that Saudi consumers may be struggling. Looking ahead, it’s unlikely that the oil sector will be able to match the growth rates recorded over the previous decade. Moreover, with fiscal policy set to become less supportive, we think that the recent weakness in the non-oil sector could be a sign of things to come.