Experts: return allowances will activate the consumer market

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Economists and financial experts < re allowances retroactively sitdakh tens of billions of riyals for the consumer market which is more need for this spending to activate, banishing the spectre of recession, expecting that causes sudden spending high prices temporarily in reaction to spending, but rising prices won’t last long.
They pointed out that this decision will revive the economy partially entered for four months at the stage of negative inflation, which will have a positive impact and bring inflation to normal within the next three months, noting that retail sectors will be affected positively and concretely in the coming period, especially airlines and hotels and tourism, expecting that somehow affected budget if oil prices improved in the short and medium term.
Banker economic expert said Al-buainain thanks: «Re retroactive allowances is one of the most important decisions in support of government employees and solvency and purchasing», expecting to have to recreate the costumes have a direct impact on the purchasing power of government employees who receive total allowances have been suspended for almost six months, which means more consumer spending and direct impact on the commercial sector that will benefit from spending. He pointed out that the retroactive payment of allowances will provide unexpected funds to cope with the burdens of successive seasons and Eid al Fitr and Eid al-Adha and return to school and that would have pumped tens of billions of consumer market most in need of this spending to activate and spectre of recession.
Al-buainain drew that spending might cause a sudden price rise temporarily in reaction to spending, he did not expect continuity in height or sustained impact inflation, because that money will pay for once, which means limited impact on inflation. He said financial markets analyst Fayez Al Hamrani: «the return of all allowances and bonuses and financial benefits for State employees, civilians and military personnel will boost the economy partly again after he and four months at the stage of negative inflation.
And between the Alhamrani inflation rate to the level of Kingdom-0.7 percent, according to data issued by the Agency, and that set the tone for the many economic activities, noting that the Mecca Royal return allowances and bonuses retroactive happy inflation to normal within the next three months. Alhamrani pointed that the retail sector will be affected positively and concretely in the coming period, especially airlines and hotels and tourism, pointing out that the balance somewhat affected if oil prices improved in the short and medium term.

Source: Alhayat

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