10 Jun 2024
RIYADH: Saudi Arabia’s real gross domestic product grew by 1.4 percent in the first quarter of this year compared to the previous quarter, official data showed.
According to the report by the General Authority for Statistics, the Kingdom’s non-oil activities also rose by 0.9 percent in the first three months of this year compared to the previous quarter.
Additionally, non-oil activities increased by 3.4 percent year-on-year in the first quarter of 2024.
GASTAT further noted that Saudi Arabia’s GDP amounted to SR1.01 trillion ($270 billion) in the first quarter.
“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,” said GASTAT in the report.
However, the Kingdom’s GDP declined by 1.7 percent in the first quarter compared to the same period the previous year.
Strengthening the non-oil private sector is crucial for Saudi Arabia, as the Kingdom is steadily diversifying its economy to reduce its decades-long dependence on oil.
The report further noted that government activities in the Kingdom rose by 2 percent year-on-year in the first quarter, while declining by 1.1 percent on a quarter-on-quarter basis.
GASTAT added that Saudi Arabia’s oil activities increased by 1.7 percent in the first quarter compared to the previous quarter.
However, oil activities dipped by 11.2 percent year-on-year, as Saudi Arabia reduced its crude production in line with the decision of the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+.
To maintain market stability, Saudi Arabia reduced its oil output by 500,000 barrels per day in April 2023, and this cut has now been extended until December 2024.
In April, the International Monetary Fund projected that Saudi Arabia’s economy would grow by 2.6 percent in 2024 and 6 percent in 2025.
In the same month, the World Bank also raised the growth prospects of the Kingdom’s economy to 5.9 percent in 2025, up from an earlier projection of 4.2 percent.