The economic landscape of Saudi Arabia experienced a contraction in the first quarter as the real gross domestic product (GDP) witnessed a 1.7% reduction compared to the previous year. This downturn, as reported by preliminary government data on a recent Sunday, was primarily due to persistent challenges in the oil sector.
Following a 3.7% GDP contraction in the last quarter of 2023, the first quarter’s decline marked the third consecutive three-month period of annual economic shrinkage. The nation’s economic woes have been exacerbated by a combination of curtailed oil production and diminishing crude prices.
According to estimates released by the General Authority for Statistics, oil-related activities saw a significant decline, down by 11.2% from the same quarter in the previous year. In contrast, the non-oil sectors of the economy painted a more positive picture, showing a 3.4% year-on-year expansion. Additionally, government-related activities demonstrated a modest 2% increase.