Saudi Arabia's Trade Surplus Shrinks as Exports Decline

Saudi Arabia's trade surplus shrank in July, according to data from GASTAT, the government stats agency. The kingdom earned less from exports and spent less on imports, resulting in a decline of 25% year-on-year to 14.36 billion riyals. Exports dropped by 17.2% to 84.38 billion riyals, with oil export values down 12.8% and non-oil exports falling 26.2%. The share of oil in exports rose to 71%, indicating the non-oil sector cooled more than the oil side.

Imports declined by 15.4% to 70.02 billion riyals, with machinery and electrical equipment remaining the largest category. China remained Saudi Arabia's largest trading partner on both sides of the ledger, making trade numbers sensitive to swings in Chinese demand and supply chains. A smaller trade surplus indicates tighter dollar inflows, which can impact government spending and the economy.