Monetary and Financial Update: Gradual Pickup in Private Sector Lending
Macroeconomic ReportThe US Federal Reserve (Fed) raised the Federal Fund Rate (FFR) in December, and lowered its projections from three to two hikes in 2019. The latest survey data show that the market expects no further hikes in 2019. Therefore, we see a rising level of uncertainty in the Feds rate decisions in 2019, with a downside projection, as the Feds latest statement acknowledged the slowing in global growth.
Monetary and Financial Update: A slow recovery in private sector lending
Macroeconomic ReportThe US Federal Reserve (Fed) raised the Federal Fund Rate (FFR) in September, and is highly expected to raise it one more time this year, lifting the probability from three to four hikes in 2018, in addition to at least two more hikes expected in H1 2019.
Saudi Economy Adjusting to Structural Change
Macroeconomic ReportWe have revised our forecast for the Saudi economy and we now expect to see growth of 2.2 percent in 2018 (compared to -0.9 percent in 2017). The sizable rebound in growth will be partly driven by an improvement in the oil sector. As Saudi Arabia raises oil output, this will positively affect oil sector GDP, lifting it to 3.2 percent in 2018, compared to a decline of 3.0 percent in 2017.
