Vision Targets Journey
According to the General Authority for Statistics, the Saudi GDP rose by 2.5% at the end of the third quarter of 2018 to reach a value of constant price of SR 653.71 billion compared to SR 637.96 billion during the same period of 2017, confirming the proper functioning of local economic indicators, the continued improvement in the Saudi economy's performance thanks to structural reforms and increased government spending, in addition to the continued application of balanced economic and development policies adopted by the State.
The rise in Saudi GDP is a recovery of the national economy after the drop in oil prices. The economy began to shift from negative growth in 2017 to positive growth in 2018 thanks to the rapid handling of the State through its new approach to diversify sources of income, control and rationalize public spending, balance the varied economic resources, restructure government support programs to increase the efficiency of the optimal utilization of resources, and spend on development projects and citizens, as well as vital sectors of interest to them.
All economic reports, including the recent budget report, indicate the continued improvement of local economy, driven by structural reforms and increased government spending, both operational and capital, a matter that will support the continued improvement of the real non-oil GDP growth, in addition to the growth of the real oil GDP at higher rates due to increase in production.
Indicators that confirm this are multiple, especially the key indicators of private consumption, including sales growth through points of sale, cash withdrawals from ATMs, in addition to the key indicators of private investment such as Purchase Managers Indicator (PMI), which refers to private sector sales, as well as corporate earnings in a myriad of sectors.
Over the past period, the State has worked on implementing many structural reforms, improving the business environment, reinforcing the role of the private sector, developing the financial market and enhancing its attractiveness to investment, paying attention to the small and medium enterprises sector, as well as encouraging and supporting the work of women and improving their working conditions and their equal income. According to the Minister of Finance few days ago, the journey continues to meet the targets of the Kingdom's Vision 2030.