Saudi GDP Shrinks 4.8% Amid War-Driven Oil Decline

Saudi Arabia's economy contracted by 4.8% in the second quarter compared to the same period last year, due in large part to a sharp decline in oil activity.

The country's real gross domestic product (GDP) took a hit as the ongoing war in the Middle East disrupted shipping and energy markets, affecting countries beyond the main fronts.

Oil activity plummeted by 24.7% during this time, accounting for a negative 5.4 percentage point contribution to Saudi Arabia's real GDP growth.

On the other hand, non-oil and government activities showed some resilience, increasing by 0.9% and 0.6%, respectively.