Middle East & North Africa Economics

Middle East Economics Focus

23 January, 2018

Saudi recovery on the way – but relief to be short-lived

Saudi Arabia’s economy should pull out of recession this year as the drag from the oil sector fades and fiscal policy is loosened. But the relief is likely to prove short-lived and, in contrast to the consensus view that the economy will continue to strengthen next year, we think that growth will slow in 2019 as lower oil prices prompt the government to resume fiscal austerity.

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