Commodities
Saudi Economy Contracts 4.8% in Q2 Amid Oil Activity Slump
The Saudi economy has contracted by 4.8% year-on-year in the second quarter of 2026, according to flash estimates from the General Authority for Statistics (Gastat). This reversal is due to a sharp 24.7% year-on-year drop in oil activities, which cut 5.4 percentage points from the headline figure.
Non-oil activities grew 0.6%, contributing 0.4 percentage points, while government activities rose 0.9%, adding 0.1 percentage point. Net taxes on products also added a further 0.1 percentage point.
The contraction comes despite higher oil revenue improving the public finances in the second quarter. The budget deficit narrowed to SR34.29bn in the second quarter, down from SR125.71bn in the first, as oil revenue rose 22% year-on-year to SR185.13bn.