The Clap
The Saudi General Authority for Statistics announced a decrease in the real Gross Domestic Product (GDP) of the largest Arab economy in the previous year by 0.8%, compared to 2022.
What
The Authority attributed the decrease to the decline in oil activities during 2023, by 9%.
While non-oil activities grew by 4.4%.
So What
The real GDP shrank in the fourth quarter of last year by 4.3% on an annual basis.
This is due to the downturn in the oil sector by 16.2% on an annual basis.
Some Context
The Saudi oil economy faces challenges, as the Kingdom extends its voluntary production cut, estimated at one million barrels per day until the end of June, keeping its production at around 9 million barrels per day.
This is within the framework of the “OPEC+” alliance aimed at achieving market stability.
Now What
Saudi Arabia’s overall industrial production index recorded a decline in January by 8.8%, compared to the same period in 2023, continuing its decline for the 13th consecutive month.
The index was directly affected by the decline in mining and quarrying activities, according to the General Authority for Statistics.
