The Saudi economy fell 0.4% YoY in the second quarter of 2024, marking “the lowest rate of GDP decline” in the past four quarters.
Key Figures
Preliminary estimates from the General Authority for Statistics showed an 8.5% YoY decrease in oil activities from April to June amid the Kingdom’s commitment to the “OPEC Plus” agreement.
This represents “the lowest fall since Q2 2023,” when it saw a 3.7% decline.
Meanwhile, non-oil activities jumped 4.4% YoY, marking “the best quarterly growth rate” in a full year. Government activities also grew 3.6%.
So what
Seasonally adjusted real GDP grew by 1.4% YoY in the second quarter of this year, driven by a 1.3% growth in oil activities, a 1.4%uptick in non-oil activities, and a 3.2% increase in government activities.
Some Context
The economic growth of the world’s largest oil exporter is expected to be among the slowest in the six-member Gulf Cooperation Council this year due to extended oil production cuts, according to a recent Reuters survey.
Economists believe that the decline in oil revenues is likely to constrain Saudi Arabia’s investment in non-oil sectors, which will affect the overall expansion of its economy.
Now what
The International Monetary Fund expects the Kingdom’s economy to grow at a 1.7% clip this year, with estimates of a 4.7% expansion for 2025.
