Saudi Economy Contraction Hits 6-Year High Amid Ongoing War

Saudi Arabia's economy contracted by 4.8% year-on-year in the three months through June, its sharpest quarterly decline since the Covid-19 pandemic. According to preliminary data from the General Authority for Statistics, this compares with a growth rate of 3% in the first quarter.

The contraction is attributed to the US-Israeli war against Iran, which has disrupted oil exports and posed significant challenges to the vital industry.

This development comes as a concern for investors and economists who are closely watching the impact of global events on the Saudi economy.