403
Sorry!!
Error! We're sorry, but the page you were
looking for doesn't exist.
Saudi GDP shrinks as oil sector drop, non-oil activities show growth
(MENAFN) In the second quarter of 2024, Saudi Arabia's gross domestic product (GDP) experienced a contraction of 0.4 percent year-on-year, primarily due to an 8.5 percent drop in oil sector activity. This decline reflects the Kingdom's adherence to the OPEC+ agreement aimed at managing oil production levels. Despite the overall contraction, the Saudi General Authority for Statistics reported an increase in non-oil activities by 4.4 percent and a 3.6 percent rise in government activities compared to the same period last year.
Seasonally, Saudi Arabia's real GDP grew by 1.4 percent in the second quarter of 2024 compared to the first quarter, driven by a 1.3 percent increase in oil activities, a 1.4 percent rise in non-oil activities, and a 3.2 percent growth in government activities. This positive growth in non-oil sectors and government spending helped offset some of the declines in the oil sector. In contrast, the first quarter of 2024 saw a 1.7 percent contraction in the economy due to a significant 10.6 percent decline in oil activities, although non-oil activities had risen by 2.8 percent.
Looking ahead, the International Monetary Fund projects a 1.7 percent growth for the Saudi economy in 2024, with expectations for a stronger recovery in 2025 at 4.7 percent. The Kingdom, through its involvement with OPEC and the OPEC+ group, which includes Russia, has been instrumental in efforts to reduce oil production to stabilize the market.
Seasonally, Saudi Arabia's real GDP grew by 1.4 percent in the second quarter of 2024 compared to the first quarter, driven by a 1.3 percent increase in oil activities, a 1.4 percent rise in non-oil activities, and a 3.2 percent growth in government activities. This positive growth in non-oil sectors and government spending helped offset some of the declines in the oil sector. In contrast, the first quarter of 2024 saw a 1.7 percent contraction in the economy due to a significant 10.6 percent decline in oil activities, although non-oil activities had risen by 2.8 percent.
Looking ahead, the International Monetary Fund projects a 1.7 percent growth for the Saudi economy in 2024, with expectations for a stronger recovery in 2025 at 4.7 percent. The Kingdom, through its involvement with OPEC and the OPEC+ group, which includes Russia, has been instrumental in efforts to reduce oil production to stabilize the market.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Comments
No comment