Positive signals from economic reopening intact, contraction forecast to slow in Q4: Alkholifey

Governor of the Saudi Arabian Monetary Authority (SAMA) Ahmed Alkholifey said the positive signals after reopening the economy remain intact, adding that while the economy is expected to contract in the fourth quarter of 2020, the pace will be slower than the second and third quarters.

Speaking at the G20 finance ministers and central bank governors meeting on Oct. 14, Alkholifey said most of the economic signals are positive as money supply grew by 9%, in addition to credit, particularly amid low borrowing costs.

He noted that asset quality and collection of doubtful receivables could be a concern, but there are positive indicators such as the foreign reserve.

The governor added the stimulus used in the financial and monetary policy was sufficient. The healthcare sector still faces some challenges, but the lockdown, which was the main handicap, has been lifted, he said.

Elsewhere, Saudi Minister of Finance Mohammed Al-Jadaan said that the G20 spending exceeded $11 trillion to blunt the economic impact of the coronavirus pandemic, noting that banks are committed to offer $75 million to the poorest countries.

He noted that an agreement has been reached on digital taxation, stressing that the Saudi economy showed positive indicators in September.

“The coronavirus pandemic proved our success in line with Vision 2030,” Al-Jadaan added.