The Central Bank recently said in a report: GDP at base prices reached 4154.8 billion riyals in the second quarter of 1401, a 3.6 percent increase from the second quarter of the first half of last year. Also, economic growth without oil during the mentioned period was 3.1%.
Economic growth in the first two seasons of the 13th government (autumn and winter 1400) was 4.8% and 5.7%, respectively, the report said. The increase in summer growth rates shows an improvement in the economic situation this season. Also, the country's economic growth in the first six months of this year was 3 percent, including oil.
Promising growth in private sector consumption in the summer of 1401
Private sector consumption grew by 5.7 percent in the second quarter of this year and 6 percent in the first six months, according to the Central Bank. The increase in private sector consumption growth in the first six months of this year is one of the most important and promising parts of the central bank's new report.
Private sector consumption is considered as a vital component in economic growth reports so that its growth promises a bright future of continuing economic growth, improving per capita income and gradually reducing the severity and widespread poverty in the country. Low growth rates and sometimes negative private sector consumption in recent years had greatly eliminated economic growth capacity.
This is a clear indication of the loss of private sector consumption power, including households, as the end consumer, due to the weakening of household purchasing power. However, the growth of private sector consumption is a sign of a slight improvement in welfare in this sector.
Government cuts due to anti-torrey budget
The 9% drop in public sector consumption reflects the government's commitment to spending cuts and avoiding money-splashing to offset the budget deficit. As government officials have emphasized on all other economic objectives many times before that inflation control is a priority, statistics indicate the government's adherence to this goal. Obviously, with the continuation of the current trend, a bright future of deflation and liquidity growth is expected.
Exports increase by turning towards exports of technological products instead of raw materials
In the first six months of this year, exports of goods increased by 7.4 percent, the central bank's report said. That's 2 percent higher than the same period last year. A look at the country's export basket during the mentioned period shows that exports of industrial and high-tech products have been significantly increased and somewhat replaced by exports of bulky products and raw materials. The increase in exports also promises continued economic growth and improved per capita income and ultimately a gradual reduction in poverty in the country.
But imports of goods grew by 14.1% in the first six months of this year compared to the same period last year. Although import growth has a negative impact on the country's economic growth, it should be noted that a large part of these imports were raw materials and capital required for production.