The Kingdom of Saudi Arabia’s real gross domestic product (GDP) witnessed an uplift of 1.4 percent in the opening quarter of the year, outperforming the numbers from the previous quarter, as per the latest governmental figures.
Statistics released by the General Authority for Statistics indicate that the first quarter saw a 0.9 percent boost in the non-oil sector activities over the preceding quarter.
Year-over-year analysis showed a more robust expansion, with non-oil activities escalating by 3.4 percent in the first quarter of 2024.
The report indicated that the nation’s GDP reached a total of SR1.01 trillion (approximately $270 billion) in this period.
Crude oil and natural gas activities achieved the highest contribution to GDP by 23.4 percent, followed by government activities at 15.8 percent, and then wholesale and retail trade, restaurants, and hotels activities with a contribution of 10.4 percent,
the report elaborated.
Despite these gains, the Kingdom’s GDP saw a 1.7 percent decrease in the first quarter when juxtaposed with the same timeframe in the preceding year.
The augmentation of the non-oil private sector remains a strategic imperative for Saudi Arabia, as it continues to pivot away from its historic reliance on oil revenue.
Government activities experienced a 2 percent year-on-year rise in the first quarter, although they saw a 1.1 percent reduction when compared to the last quarter.
Oil sector activities also grew by 1.7 percent over the previous quarter, but endured an 11.2 percent decline year-on-year. This was primarily due to Saudi Arabia curtailing its crude production to align with OPEC+ agreements.
In a move to stabilize the market, the nation curtailed its oil production by half a million barrels daily in April 2023, a measure that is expected to extend until the end of 2024.
Projections by the International Monetary Fund in April forecasted that the Saudi economy would burgeon by 2.6 percent in 2024, followed by a 6 percent growth in 2025. Concurrently, the World Bank revised its growth forecast for the Kingdom’s economy to 5.9 percent in 2025, a notable increase from the previous 4.2 percent estimate.