2024-07-31 16:26:10
The Saudi economy contracted slightly by 0.4% in the second quarter of 2024 on an annual basis, declining at a slower pace than in the previous two quarters, as a result of a slowdown in the contraction in the oil sector.
According to data from the General Authority for Statistics, the oil sector shrank in the second quarter of this year by 8.5% on an annual basis, thus slowing the contraction of the sector compared to the previous three quarters.
The slowdown in the economic contraction was supported by the growth of the non-oil sector by 4.4%, continuing its rise for the thirteenth consecutive quarter, and recording the fastest growth rate in a year, thanks to economic diversification within the economic reform program “Vision 2030”, which contributed to reducing the impact of the oil sector’s contraction on the economy, while government activities rose for the 12th consecutive quarter by 3.6%, which is the fastest growth rate in six quarters.
The Saudi economy is shrinking for the fourth consecutive quarter, coinciding with the reduction of oil production to about 9 million barrels per day, within the OPEC+ group, which aims to support market stability.
The Saudi economy had contracted by 4.3%, 3.2% and 1.7% in the previous three quarters, respectively, with the oil sector shrinking by 16.1%, 16.2% and 11.2%.
In 2023, the Saudi economy will decline by 0.8%, higher than the Saudi Ministry of Finance’s expectations of 0.3%, due to a 9% contraction in the oil sector.
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2024-07-31 16:26:10