According to a release of preliminary data by the Saudi government, the nation’s real gross domestic product (GDP) saw a reduction of 1.7% compared to the same period in the previous year. This downturn, noted in the first quarter, is attributed to the persistent slump in oil sector activities, which continues to dampen the country’s economic momentum.
Following a 3.7% GDP contraction in the last quarter of 2023, the latest figures signal the third successive quarterly year-on-year downturn for the kingdom, driven by reductions in oil production and falling crude oil prices.
In a detailed breakdown, oil-related activities experienced a significant 11.2% decrease in the first quarter when juxtaposed with the previous year, as per the General Authority for Statistics’ estimates. Conversely, the non-oil sector of the economy showed resilience with a growth of 3.4% year-on-year, and activities orchestrated by the government saw a 2% rise.