The Saudi government looks set to loosen fiscal policy this year which should support a pick-up in economic growth. However, as we explain in this Watch, households won’t be net beneficiaries from this. The introduction of a new household allowance and recent bonus awards will only just offset the impact of a wave of austerity measures that will cause inflation to jump to as much as 6.5% this year. Overall, we expect household spending to remain a weak spot in the broader economic recovery.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.