The Saudi economy may expand slower than predicted. Here’s why – ZAWYA

The Saudi economy may expand slower than predicted. Here’s why – ZAWYA

While Saudi Arabia's economy is expected to rebound in 2020 from the downturn last year, weak global oil demand forecasts, which are now exacerbated by a coronavirus-related demand slowdown and barring foreign pilgrims from entering the kingdom, could hinder its recovery.. Riyad Capital said in a report last week said the Kingdom's economy is expected to rebound to 2.4 percent growth this year after an estimated growth rate of 0.3 percent in 2019.. Oil sector real GDP growth is set to turn positive again this year with a growth rate of 1.6 percent after an estimated 3.4 percent contraction in 2019, according to the investment bank.. The International Energy Agency's (IEA) outlook has said global oil demand growth has fallen to its lowest level in a decade and has downgraded the forecast for crude demand further due to the coronavirus outbreak.. According to Riyad Capital, the non-oil private sector economy grew at 4.2 percent in Q3 2019, a growth rate last time seen in 2014. ". We forecast continued solid growth of 3.3 percent for the private sector economy in 2020.". We have penciled in GDP growth of 1.3 percent for 2020 as a whole," it said in a