Covid Economies: #Saudi Central Bank Sees No V-Shaped Rebound Yet - Bloomberg

Covid Economies: Saudi Central Bank Sees No V-Shaped Rebound Yet - Bloomberg:

Saudi Arabia’s central bank governor said it’s “too early” to tell if the economy of the world’s largest oil exporter will bounce back with a V-shaped recovery as the government loosens coronavirus-related restrictions.

Officials “believe in the resilience of the Saudi economy,” and consumer spending data has seen a pickup since the kingdom’s reopening in late May, Saudi Arabian Monetary Authority Governor Ahmed Alkholifey said in an interview with Bloomberg TV. But there are still potential downside risks from a second wave of the virus or negative developments in the global economy, he said.

“We see light at the end of the tunnel yet we remain vigilant, to be honest,” Alkholifey said in the interview on Monday.



The oil-dependent kingdom is facing a double crisis this year from crude market turmoil and the global pandemic, pushing the government to roll out major austerity measures like a July 1 hike to the value-added tax. The International Monetary Fund is predicting a 6.8% contraction for Saudi Arabia this year, the deepest in decades, followed by a return to 3.1% growth in 2021.