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Article: SAUDI CONSUMPTION CLIMATE IMPROVES.(Saudi Arabia )(Brief Article)
- Article from:
- Market Africa Mid-East
- Article date:
- April 1, 2004
CopyrightCOPYRIGHT 2004 Media Contact Resources, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The climate for private sector consumption in Saudi Arabia is improving from a macroeconomic as well as a microeconomic perspective. Slippage in the value of the national currency (the riyal) was enough to give a cost-competitive edge to Saudi ArabiaAEs export products, but not enough to undermine demand for imported goods and services.
At the outset of this year, inflation was running at about 0.5 percent year-on-year. Lending rates have dropped, and that has paved the way for attractive financing offers on high-end goods. Inflation may rise to 1.5 percent by the second half of 2004, but lending rates should remain relatively stable.
Consumer confidence ...