Saudi Arabia’s imports fell an annual 8.2 percent in June, the eighth drop in a row, while nonoil exports rose 14.9 percent, data from the Central Department of Statistics and Information showed.

Nonoil exports account for around 12 percent of overall exports of Saudi Arabia.

Analysts polled by Reuters in April forecast a Saudi Arabian current account surplus of 16.6 percent of gross domestic product in 2014 and 11.9 percent in 2015.

Saudi Arabia does not release complete trade data on a monthly basis. Trade data are often revised by the statistics office.

Percentage changes are Reuters calculations based on the official data.

In a recent, Jadwa Investment projected a current account surplus of $133 billion (16.9 percent of GDP).

Latest trade data have shown a moderate growth in nonoil exports,

According to a research report from National Commercial Bank, the domestic economy imported goods worth SR51.5 billion, an annual 8.2 percent decline during June.

Imports by weight recorded a drastic drop of 20.9 percent annually, declining from 7.1 million tons in June 2013 to 5.6 million tons 12 months later, said the report.

Over a quarter of Saudi imports consist of machinery and mechanical equipment at SR13.2 billion, dropping by 10.0 percent Y/Y in June, said the report.

Additionally, transport equipment imports’ total value declined by 15.6 percent annually.

As the Saudi economy is heavily reliant on imports for consumer goods, imported inflation influences local prices to a considerable degree. Imports from the European Union represented 27.8% of the total import bill during June, SR14.4 billion.

Consequently, the recent strength of the US dollar will positively impact Saudi Arabia’s trade balance and reduce pressures on local consumer prices.

China has recently overturned the US as the top source of Saudi imports. Their consistent growth over the past decade provided a competitive alternative for cheaper goods as they have the edge over advanced economies with regards to costs.

Saudi Imported SR7.5 billion worth of goods from China while SR6.0 billion came from the US in June.