Saudi budget 2021 commentary: We expect a broad-based recovery next year

Saudi budget 2021 commentary: We expect a broad-based recovery next year

Saudi budget 2021 commentary: We expect a broad-based recovery next year

Saudi budget 2021 commentary: We expect a broad-based recovery next year

After Tuesday's Saudi Budget announcement, Asad Khan, head of research, Jadwa Investment, believes the Kingdom will see a broad-based recovery into 2021. (Shutterstock/File Photo)

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Saudi budget 2021 commentary: We expect a broad-based recovery next year

GDP in 2020 was affected by a decline in both the oil and non-oil sector, says Asad Khan

Updated 17 December 2020

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RIYADH: After Tuesday's Saudi Budget announcement, Asad Khan, head of research, Jadwa Investment, believes the Kingdom will see a broad-based recovery into 2021.

"According to the budget statement, real GDP (gross domestic product) growth is expected to have declined by -3.7 percent year-on-year in 2020 compared with our forecast of -3.6 percent and compared with a 0.3 percent rise year-on-year in 2019.

"GDP in 2020 was affected by a decline in both the oil and non-oil sector. In fact, Saudi crude oil production is expected to average 9.2 million barrels per day (bpd) in 2020, compared with 9.8 million bpd during the same period last year.

"The reduction in output reflects Saudi Arabia's commitment to the OPEC and non-OPEC (OPEC+) agreement.

"Meanwhile, as we highlighted in our recent macroeconomic update,