Arab News, Mon, Jun 10, 2024 | Dhu al-Hijjah 4, 1445
Saudi Arabia’s GDP grows 1.4% in Q1 2024: GASTAT
Saudi Arabia:
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.