Reports and research centers in Saudi Arabia said that stimulus packages and government support programs, which were adopted before the outbreak of COVID-19 in the Kingdom, succeeded in mitigating the deteriorating effects of the virus in the first half of 2020.
A recent report by researchers at Jadwa Investment Company stressed that Saudi authorities have taken many precautions to prevent the quick spread of the coronavirus, noting that the impact of the outbreak on the Kingdom’s economy was not yet clear.
Raja Asad Khan, head of the company’s research department, and Dr. Nouf Al Sharif, senior economist, said the pandemic across the world has led to a widespread and permanent turmoil in world trade and industrial output for the current year 2020, which will inevitably impact the local economy.
He underlined, however, that although the developments associated with the coronavirus would weaken growth prospects of the global economy, optimism about easing monetary policies globally, as well as expectations of more substantial financial stimulus by some countries, including Saudi Arabia, would alleviate the negative economic impacts of the virus, which will likely remain limited to the first half of the year.
The report suggested that the wholesale and retail trade, in addition to restaurants and hotels, would see a decline in growth this year, as a result of the cancellation of entertainment and recreation activities, especially during the second half of 2020.
A gradual recovery of activities in the Kingdom is expected in the third quarter, as the impact of the coronavirus is expected to decrease worldwide, according to the report.
