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Saudi Economic Activity to Grow by End of Q3 2020

Saudi Economic Activity to Grow by End of Q3 2020

Sunday, 12 July, 2020 - 10:30
Estimates confirm growth indicators for the Saudi economy , Asharq Al-Awsat
Riyadh - Fatehelrahman Yousif

Indicators for recovery and growth of the Saudi economy are improving starting from the end of Q3 2020. This comes after easing the strict COVID-19 lockdown which lasted for four months.

Economists believe that Q3 will usher in growth as economic activity gains momentum coupled with the attraction of more investments.

Investments are expected to increase with the growing investor confidence and increasing liquidity rates in the local market.

The optimism is also accompanied with indicators of high oil prices.

Economist Salem Bajaja says that optimism prevails over analytical visions of the Saudi economy with the economy reopening and trade returning to its course amid health preventative measures placed by the Health Ministry. Stores in Saudi Arabia are reopening after a 90-day shutdown to stem the spread of the novel coronavirus.

Bajaja underlined that it was the successful policies placed by authorities in Saudi Arabia that will have a positive yield in Q3.

Bajaja, speaking to Asharq Al-Awsat, points out that the recovery of the Saudi economy in the coming few months is reinforced by the confidence in the improvement of the health situation as virus infection recoveries are on the rise.

Abdul Rahman Baeshen, head of the Ashorouq Center for Economic Studies, confirmed that the policies pursued by government sectors, including financial and labor policies, will pay off within two months from now.

Baeshen expected an increase the import and export movement by no less than 1% before the end of 2020, noting that active movement began to return in most parts of the world, which entails the movement of trade, investment, exports and imports.

Economist Khaled Ramadan attributed the expectations of the Saudi economy's recovery starting from Q3 2020 to several reasons, the most important of which is the momentum of the return of economic activity after a long absence, and expectations to attract more investments and high oil prices.

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