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Saudi Non-Oil Private Sector Achieves Fastest Growth in 6 Months

Saudi factories witness an increase in production volume (SPA)
Saudi factories witness an increase in production volume (SPA)
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Saudi Non-Oil Private Sector Achieves Fastest Growth in 6 Months

Saudi factories witness an increase in production volume (SPA)
Saudi factories witness an increase in production volume (SPA)

Saudi Arabia’s non-oil private sector continued its steady growth in December, registering an increase that remained unchanged from November.

This growth was recorded by all sectors included in a special study of the Purchasing Managers’ Index (PMI), as companies mainly linked the expansion of production to an increase in new business flows, which grew at the highest rate since June.

The Riyad Bank Purchasing Managers’ Index in Saudi Arabia recorded 57.5 points in December 2023, for the second month in a row, indicating a noticeable improvement in the conditions of the non-oil economy, as the index remained above the neutral reading of 50 points for more than 3 years.

According to the Purchasing Managers’ Index issued on Wednesday, the improvement in business conditions continued strongly in the Kingdom’s non-oil private sector during the end of 2023.

The private sector also witnessed the fastest rate of sales growth since June. The increase in new purchase orders gave companies greater confidence in setting prices and helped achieve a noticeable growth of purchasing activity. Conversely, expectations for employment growth and commercial activity declined compared to November of the same year.

Furthermore, the pace of sales growth was among the fastest recorded in the last 9 years, with companies highlighting the presence of new customers and improving demand conditions.

Non-oil producing companies continued to indicate optimistic expectations for the next 12 months, anticipating that new business flows would continue to grow strongly. However, the degree of confidence softened and was below the trend recorded in 2023.

Construction companies were the most optimistic about their growth prospects compared to the other major sectors.

“Saudi Arabia’s non-oil PMI for December reached an impressive 57.5 driven by a faster increase in new orders, particularly within the manufacturing sector,” Naif Al-Ghaith, chief economist at Riyad Bank, said in the report.

He added: “This growth was supported by a sharp rise in business activity and exports, highlighting the resilience and strength of the non-oil economy.”

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China Hits Back at US and Will Raise Tariffs on American Goods from 84% to 125%

An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura
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China Hits Back at US and Will Raise Tariffs on American Goods from 84% to 125%

An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura

China announced Friday that it will raise tariffs on US goods from 84% to 125% — the latest salvo in an escalating trade war between the world's two largest economies that has rattled markets and raised fears of a global slowdown.

While US President Donald Trump paused import taxes this week for other countries, he raised tariffs on China and they now total 145%. China has denounced the policy as “economic bullying" and promised countermeasures. The new tariffs begin Saturday.

Washington's repeated raising of tariffs “will become a joke in the history of the world economy,” a Chinese Finance Ministry spokesman said in a statement announcing the new tariffs. “However, if the US insists on continuing to substantially infringe on China’s interests, China will resolutely counter and fight to the end.”

China’s Commerce Ministry said it would file another lawsuit with the World Trade Organization against the US tariffs.

“There are no winners in a tariff war,” Chinese leader Xi Jinping said during a meeting with the Spanish Prime Minister Pedro Sanchez, according to a readout from state broadcaster CCTV. “For more than 70 years, China has always relied on itself ... and hard work for development, never relying on favors from anyone, and not fearing any unreasonable suppression.”

Chinese Foreign Minister Wang Yi on Friday said China stands firm against Trump’s tariffs not only to defend its own rights and interests but also to “safeguard the common interests of the international community to ensure that humanity is not dragged back into a jungle world where might makes right.”

Wang made the remarks when he met Rafael Mariano Grossi, director general of the International Atomic Energy Agency in Beijing. Wang said China will “work together with other countries to jointly resist all retrogressive actions in the world.”

Trump's on-again, off-again measures have caused alarm in stock and bond markets and led some to warn that the US could be headed for a recession. There was some relief when Trump paused the tariffs for most countries — but concerns remain since the US and China are the world's No. 1 and No. 2 economies, respectively.

“The risk that this escalating trade war tips the world into a recession is rising as the two largest and most powerful countries in the world continue to punch back with higher and higher tariffs,” Jennifer Lee, a senior economist at BMO Capital markets, wrote Friday. “No one truly knows when this will end.”

Chinese tariffs will affect goods like soybeans, aircrafts and their parts and drugs — all among the country's major imports from the US Beijing, meanwhile, suspended sorghum, poultry and bonemeal imports from some American companies last week, and put more export controls on rare earth minerals, critical for various technologies.

The United States' top imports from China, meanwhile, include electronics, like computers and cell phones, industrial equipment and toys — and consumers and businesses are likely to see prices rise on those products, with tariffs now at 145%.

Trump announced on Wednesday that China would face 125% tariffs, but he did not include a 20% tariff on China tied to its role in fentanyl production.

White House officials hope the import taxes will create more manufacturing jobs by bringing production back to the United States — a politically risky trade-off that could take years to materialize, if at all.