Saudi GDP Crumbles Amid Ongoing Conflict

Saudi Arabia's economy took a hit in the second quarter of this year due to ongoing conflicts in the Middle East. The country's real gross domestic product fell by 4.8% compared to the same period last year, according to preliminary government estimates released on Thursday.

The decline was largely driven by a significant drop in oil activity, which plummeted by 24.7%. This contraction had a substantial impact on Saudi Arabia's economy, contributing negatively to real GDP growth by 5.4 percentage points. On the other hand, non-oil and government activities saw slight increases of 0.9% and 0.6%, respectively.

The US attack on Iran has exacerbated the situation, further disrupting shipping and energy markets in the region. The conflict has already had a ripple effect on economies in countries beyond the main fronts, including Saudi Arabia, Iraq, and Egypt.