Closures bring consumer spending to 721 billion riyals

Consumer spending in the Kingdom recorded a decrease of 5.57% during the first 9 months of 2020 on an annual basis, equivalent to 42.52 billion riyals as a result of the closures of some economic and commercial activities, especially in the second quarter, in conjunction with the outbreak of the new Corona virus (Covid-19). The data of the Monetary Agency showed a decrease in the volume of consumer spending to 721.18 billion riyals in the first 9 months of this year, compared to 763.7 billion riyals in the same period of 2019.

This came despite the increase in the values ​​of POS sales operations, with the support of the government’s trend towards enhancing electronic payment methods, especially in retail activities. Cash withdrawals witnessed a decrease of 15.4%, equivalent to 85.4 billion riyals in the first 9 months of 2020 To reach 469.41 billion riyals, compared to 554.81 billion riyals in the same period last year. Withdrawals amounted to 176.24 billion riyals in the first quarter, an annual decrease of 3.97%, and a low level in the second quarter by 134.42 billion riyals and finally 158.75 billion riyals in the third quarter, a decrease of 12.8%. In contrast, sales of POS operations increased by 42.88 billion riyals to 251.78 billion riyals, compared to 208.9 billion Riyals in the same period of the year 2019, with an increase of 20.53%. Consumer spending focused on the food and beverage sector by 45.91 billion riyals, followed by restaurants and hotels with spending amounting to 26.25 billion riyals, then health by 21.35 billion riyals. The spending in the clothing and shoes sector amounted to 18.88 billion riyals. Services are 20.68 billion riyals, and the city of Riyadh topped in consumer spending by 77.99 billion riyals, followed by Jeddah with 39.39 billion riyals, Dammam with 14.2 billion riyals, then Medina with 9.19 billion riyals, and Mecca with 7.26 billion riyals.

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