Saudi Arabia’s seasonally adjusted real gross domestic product (GDP) grew 1.4 percent quarter-on-quarter during the second quarter of 2024. The Kingdom witnessed a rise in both oil and non-oil activities, which grew by 1.3 percent and 1.4 percent, respectively. In addition, government activities saw a 3.2 percent expansion quarter-on-quarter.
The latest flash estimates from the General Authority for Statistics (GASTAT) reveal that Saudi Arabia’s GDP contracted by 0.4 percent annually. This decline was primarily driven by the decrease in oil activities by 8.5 percent compared to Q2 of 2023. In contrast, non-oil activities expanded by 4.4 percent annually while government activities increased by 3.6 percent.
The annual decline in Saudi Arabia’s oil activity is mainly due to its decision to cut its oil production output, in line with the OPEC+ agreement. In a bid to stabilize crude prices, Saudi Arabia reduced its oil output by 500,000 barrels per day in April 2023 and extended this cut until December 2024.
In the first quarter of 2024, Saudi Arabia’s real GDP grew by 1.4 percent quarter-on-quarter while non-oil activities rose by 0.9 percent. Additionally, non-oil activities increased by 3.4 percent year-on-year in Q1 2024.
Notably, both the International Monetary Fund (IMF) and the World Bank have revised their growth projections for the Saudi economy in 2025 upwards. In July, the IMF revealed that Saudi Arabia’s GDP will likely grow by 1.7 percent in 2024 and 4.7 percent in 2025.
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