Saudi Economy Contracts 4.8% in Q2 Amidst Oil Activity Tumble
Saudi Arabia's economy contracted by 4.8% in Q2 of this year, marking its steepest decline since the COVID-19 pandemic. This is according to official flash estimates released by the General Authority for Statistics.
The sharp reversal from the first quarter, where the kingdom's real GDP expanded by 3%, was driven largely by a 24.7% plunge in oil activities year-on-year. Non-oil activities grew modestly at 0.6%, while government sectors increased by 0.9%.
The oil sector subtracted 5.4 percentage points from annual GDP growth, with non-oil activities adding 0.4 percentage points and government activities contributing 0.1 percentage point each. On a seasonally adjusted basis, real GDP fell 4.9% in the second quarter compared to the previous three-month period.
The quarterly decline was largely driven by a 21.5% contraction in oil activities. Non-oil activities decreased by 0.5%, while government activities rose by 0.2%. The estimates use indicators covering production, expenditure, income, prices, and foreign trade.