#Saudi private sector strong in January but coronavirus may reverse growth - Reuters

Saudi private sector strong in January but coronavirus may reverse growth - Reuters:

A relatively strong start to the year for Saudi Arabia’s private sector may prove short-lived as the coronavirus outbreak is seen hurting the tourism sector and consumer spending.

Loans to the private sector – whose growth is essential to Crown Prince Mohammed bin Salman’s plans to transform the oil-dependent economy – rose 8.5% year-on-year in January, data from the central bank, Saudi Arabia Monetary Authority, showed last week, with a rise in mortgages backing the uptick.

Consumer spending was driven by a 33% annual jump in “point of sales” transactions, particularly for hotels and restaurants, a reflection of Saudi reforms that have relaxed social habits in the conservative kingdom.

But the spread of coronavirus is expected to weigh on the Saudi economy because of a slowdown in global demand for oil and tourism curbs introduced by Saudi authorities.