Saudi economy slows in Q1, likely to weaken further

Q1 GDP data showed that the Saudi economy slowed a touch from Q4 on the back of weakness in the non-oil private sector. The latest PMI surveys suggest that growth in this sector stabilised in Q2, although it’s difficult to square this with other indicators which paint a more downbeat picture. All told, we think that growth in Saudi Arabia will probably weaken further over the coming quarters, averaging around 3.5-4.0% y/y.