Jadwa expects Saudi economy to grow 2% in 2019

Saudi Arabia’s economy is expected to grow by 2 percent this year, compared to 2.2 percent in 2018, Jadwa Investment said in a new report on Tuesday.

"The mild decline in yearly growth is entirely due to lower oil sector GDP as the Kingdom complies with the OPEC+ production agreement. That said, we still see oil sector growth being helped along by a rise in gas output and the opening of the Jazan refinery," it added.

Non-oil sector is slated to grow by 2.3 percent, up from 2.1 percent last year, benefitting from an expansionary fiscal policy and a number of targeted support measures such as payments under the Citizen’s Account, annual allowances for public sector workers being reinstated and scheme to allocate SAR 11.5 billion to help eligible companies with expat fees.

"During 2019, we expect to see a consolidation of efforts in striving towards the goals of the Vision 2030, as well as the targets set under the National Transformation Program," Jadwa said, adding the effort will be supported by the largest ever budgeted expenditure of SAR 1.1 trillion.

Meanwhile, the consultancy expects 2019 to be a tumultuous year globally, citing a number of economic developments have the potential to derail economic growth including risk related to continuation of a trade dispute between the US and China.