A bunch of warning signs have bubbled up in Saudi Arabia's economy over the past few months.Supply and demand for oil.
The Saudi economy grew at just 1.5% in the first quarter, compared with the year before — its slowest rate since 2013.
And while the oil sector grew by 5.1% year-over-year, the non-oil sector shrank by 0.7% — the weakest reading in at least five years.
Moreover, output in the construction sector shrank by 1.9% year-over-year in July.
And, most recently, a note from Al Rajhi Capital pointed out that the Saudi Arabia Interbank Offered Rate, or Saibor, has nearly tripled — to about 2.3% from less than 0.8% — over the past year and is now facing a "liquidity squeeze in the market."
Tuesday, August 30, 2016
The Business Insider reports:
Posted by Steve Bartin at 4:23 PM