Liquidity of Saudi economy reaches highest level, jumping 8.3% to SR2.82 trillion
Liquidity of Saudi economy reaches highest level, jumping 8.3% to SR2.82 trillion Saudi Gazette
sdgtalks
Saudi Gazette Report
Riyadh
The liquidity of the Saudi economy continued to experience robust growth, reaching its peak at the end of March 2024, with a total of SR2,823,745 million. This represents an annual growth rate of 8.3 percent, amounting to over SR215 billion compared to the same period in 2023, which stood at SR2,608,319 million. These figures were revealed in the monthly statistical bulletin of the Saudi Central Bank (SAMA) for March 2024.
The liquidity levels also achieved a monthly growth rate of 2.5 percent, an increase of approximately SR67,553 million compared to the end of February 2024, which was at the level of SR2,756,193 million. These levels of liquidity play a supportive role in economic and commercial activity, contributing significantly to the process of economic development and acting as a catalyst for GDP growth. They also enable the achievement of the goals outlined in Saudi Vision 2030, reflecting the strength and stability of the banking and financial sector.
This growth in liquidity is primarily attributed to the rise in the total money supply (M3) and the increase in demand deposits, which contribute approximately 49.8 percent to the total money supply, with a value of SR1,407,114 million. Demand deposits experienced an annual growth of over SR52,722 million, representing a 3.9 percent increase compared to SR1,354,392 million at the end of March 2023.
On a monthly basis, demand deposits grew by 4.4 percent, with an increase of over SR59,864 million compared to SR1,347,250 million at the end of February 2024.
Time deposits and savings deposits, which make the second largest contribution to the total money supply, increased by 29.9 percent, with a value of SR843,248 billion. They achieved an annual growth of over SR144 billion, representing a growth rate of 20.7 percent compared to SR698,436 million at the end of March 2023. On a monthly basis, time deposits and savings deposits grew by 0.6 percent, with an increase of over SR4 billion compared to SR838,533 million at the end of February 2024.
Cash in circulation outside banks contributed approximately 8.1 percent to the total money supply, with a value of SR227,491 million. It experienced an annual growth of over SR19,938 million, representing a growth rate of 9.6 percent compared to SR207,553 million at the end of March 2023. On a monthly basis, cash in circulation outside banks grew by 4.4 percent, with an increase of over SR9,514 million compared to SR217,976 million at the end of February 2024.
Other quasi-cash deposits accounted for approximately 12.2 percent of the total money supply, with a value of SR345,892 million. It is important to note that quasi-cash deposits consist of resident deposits in foreign currencies, deposits against documentary credits, existing transfers, and repurchase operations (repo) carried out by banks with the private sector.
SDGs, Targets, and Indicators
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SDG 8: Decent Work and Economic Growth
- Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries
- Indicator: Annual growth rate of liquidity of the Saudi economy
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SDG 9: Industry, Innovation, and Infrastructure
- Target 9.3: Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets
- Indicator: Increase in demand deposits and time deposits
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SDG 17: Partnerships for the Goals
- Target 17.1: Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection
- Indicator: Increase in cash in circulation outside banks
Analysis
The article highlights the robust growth of liquidity in the Saudi economy, which is relevant to SDG 8 (Decent Work and Economic Growth). The annual growth rate of liquidity is mentioned as 8.3 percent, indicating positive economic growth. This aligns with Target 8.1, which aims to sustain per capita economic growth. The article also mentions that liquidity levels support economic and commercial activity, contributing to GDP growth and the goals of Saudi Vision 2030.
Furthermore, the article discusses the rise in demand deposits and time deposits, which relates to SDG 9 (Industry, Innovation, and Infrastructure). Target 9.3 focuses on increasing access to financial services for small-scale enterprises, including affordable credit. The increase in demand deposits and time deposits reflects improved access to financial services for businesses.
The article also mentions cash in circulation outside banks, which is relevant to SDG 17 (Partnerships for the Goals). Target 17.1 aims to strengthen domestic resource mobilization, including through international support. The increase in cash in circulation indicates improved financial transactions and revenue collection.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries | Annual growth rate of liquidity of the Saudi economy |
| SDG 9: Industry, Innovation, and Infrastructure | Target 9.3: Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets | Increase in demand deposits and time deposits |
| SDG 17: Partnerships for the Goals | Target 17.1: Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection | Increase in cash in circulation outside banks |
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Fuente: saudigazette.com.sa
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