Saudi Arabia Achieves Highest PMI Among G20 Nations In December 2023: Report
In the latest economic assessment, Saudi Arabia emerged as a leading nation among the G20 countries, showcasing the highest Purchasing Managers' Index (PMI) performance in December. This achievement underscores the strength of the Kingdom's non-oil private sector and robust domestic demand. In contrast, many G20 nations experienced a downturn during the same, attributed to weakened global demand, financing costs, surplus inventory in certain sectors and the repercussions of tightening policies.
The Saudi Ministry of Economy and Planning's for Q4 2023, released on Sunday, highlighted the Kingdom's positive economic trajectory. This was evidenced by favorable purchasing managers' indices and labor market conditions. The government's forward-looking measures were credited for tempering price increases, with the average consumer price index marking a modest rise of 2.3% from the previous year.
Further, the labor market in Saudi Arabia saw significant improvements, with the unemployment rate among Saudis dropping to 7.7% in Q4 2023, down from 8% the previous year. This progress was linked to the expansion of the labor market, increased labor demand, effective nationalization strategies, women's empowerment, and the ongoing roll-out of major projects.
December also witnessed a surge in corporate activity, continuing the growth in purchases observed in recent months, particularly in industrial products. This aligns with the state's financial policies aimed at fulfilling Vision 2030 objectives. Public revenues saw a 12% year-over-year increase, reaching SAR 358 billion ($95.4 billion) in Q4, while public expenditures grew by 8.6%, totaling SAR 395 billion. Consequently, the budget reported a financial deficit of SAR 37 billion.
The chemical industry led the non-oil exports for Q42023, generating SAR 22.2 billion ($5.9 billion) and representing 31.2% of total non-oil exports, despite an 18.3% decline on an annual basis. The state's 2023 general budget statement disclosed total revenues of SAR 1.212 trillion against expenditures of SAR 1.293 trillion, resulting in a SAR 80.9 billion deficit.
Additionally, the non-oil trade balance deficit widened by 24.8% to SAR 93.2 billion, following a 1.2% decrease in non-oil exports to SAR 71.1 billion. This financial overview reflects the complex dynamics of Saudi Arabia's economic landscape as it navigates through both domestic and global challenges while striving towards its ambitious Saudi Vision 2030 goals.
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