The result of the first three months of the fiscal year of one of the wealthiest countries in the Middle East has been shared, showing a slight growth in the real gross domestic product of the country. This official data belongs to Saudi Arabia where the real GDP has risen by 1.3 per cent compared to the previous quarter. It is an undeniable fact that the economy of Saudi Arabia is one of the largest economies in the Arab world and the Middle East and this data has again proved it.
Speaking of the rise in real GDP, the factors that influence it are oil and non-oil activities happening in the country. The General Authority for Statistics (GASTAT) is supporting the claims. As per GASTAT, the rise of 1.3 per cent in GDP was driven by oil and non-oil activities which rose by 2.4 per cent and 0.5 per cent during the period. However, the activities run by the government in the Kingdom witnessed a fall of 1 per cent in the first three months of this year as compared to the final quarter of the fiscal year of 2023.
GASTAT further disclosed in their report that the real GDP of Saudi Arabia fell by 1.8 per cent in the initial three months of 2024 against the same period of the last year. The authority blamed this decline on a decline in oil activity in the first quarter, which fell by 10.8 per cent on an annual basis. The decrease in oil exports resulted from the Kingdom’s choice to limit its petroleum production under an agreement made by OPEC+, the Organisation of the Petroleum Exporting Countries and its allies.
It is worth noting that to maintain market stability, Saudi Arabia reduced its oil output by 500,000 barrels per day in April 2023, a measure that has now been extended until December 2024. However, non-oil activities in the Kingdom alleged a 2.8 per cent year-on-year (YoY) rise in the first quarter, with government activities experiencing a growth of 2% at the time of the same period. As the Kingdom gradually weans itself from its reliance on oil, strengthening the non-oil private sector is essential in line with Vision 2030’s attempts to diversify the economy.
Apart from this report, GASTAT issued another report in March which showcased that the GDP of Saudi Arabia shrunk by 0.8 per cent in 2023 compared to 2022. Meanwhile, the non-oil activities of the Kingdom demonstrated an impressive growth of 44 per cent in last year compared to 2022. In 2023, the government activities taking place in the Kingdom also demonstrated an increase of 2.1 per cent compared to the previous year.
Besides, GASTAT also shared an international trade report from Saudi Arabia on Tuesday, 30 April 2024 which pointed out that the non-oil exports of Saudi Arabia, including re-exports, fell by 13.7 per cent to $72.62 billion in 2023 compared to 2022. According to the data, the Kingdom’s total merchandise exports in 2023 decreased by 22.2 per cent year over year to SR1.2 trillion, mostly due to a 24.3 per cent decline in oil shipments during that time.
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