Economy

Saudi Arabia's economy returns to growth after pandemic slump – Financial Post

Published

3 years ago

August 9, 2021

DUBAI — Saudi Arabia’s economy grew for the first time since the coronavirus pandemic in the second quarter fueled by a 10.1% growth in the non-oil sector, according to flash government estimates on Monday.

The data, which showed the economy growing 1.5% from a year ago, prompted economists to expect faster expansion in the second half of the year with the oil sector benefiting from higher output.

“The quarterly GDP growth points to a further pick-up in activity, with the oil sector benefiting from higher production,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank.

The kingdom’s economy contracted last year due to the twin shock of the COVID-19 pandemic and lower oil prices.

Seasonally-adjusted real gross domestic product grew 1.1% in the second quarter from the first quarter, the General Authority for Statistics in Saudi Arabia said in a statement.

The International Monetary Fund expects Saudi economy to grow by 2.4% this year. James Swanston, an economist at Capital Economics, said it could grow twice as fast with further easing of the pandemic curbs and oil producers’ agreement to boost output.

“Overall, we have penciled in real GDP growth of 4.8% this year and 6.3% year-on-year in 2022,” Swanston said.

The oil sector which accounts for about 25% of the economic output expected to exceed $700 billion this year, contracted 7% year-on-year, but grew seasonally-adjusted 2.5% quarter-on-quarter.

OPEC+ ministers agreed last month to boost oil supply from August to cool prices which have climbed to 2-1/2 year highs as the global economy recovers from the pandemic.

Saudi Arabia’s non-oil sector grew seasonally-adjusted 1.3% quarter-on-quarter.

The kingdom is trying to boost the non-oil sector through a multi-trillion dollar spending push that will require state companies to cut the dividends they pay the government to boost capital spending.

Crown Prince Mohammed bin Salman, architect of the Saudi Vision 2030 program, has said the state-backed Public Investment Fund (PIF) will pump at least 150 billion riyals ($40 billion) into the local economy each year through 2025. (Reporting by Saeed Azhar; Editing by Kevin Liffey and Tomasz Janowski)

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Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

Published

1 day ago

September 13, 2024

Anne Joseph

TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Statistics Canada reports wholesale sales higher in July

Published

1 day ago

September 13, 2024

Anne Joseph

OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

Published

2 days ago

September 12, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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