Saudi Arabia’s real GDP recorded a growth rate of 2.8 percent in the third quarter (Q3) of 2024, compared to the same quarter last year, as announced by the General Authority for Statistics (GASTAT). In its preliminary estimates for Q3 2024, published on its official website, GASTAT reported that oil activities expanded by 0.3 percent year-on-year, while non-oil activities experienced a notable growth of 4.2 percent. Additionally, government activities demonstrated a positive growth rate of 3.1 percent in comparison to the same period last year. Seasonally adjusted real GDP for Q3 2024 also saw an increase of 0.8 percent compared to Q2 2024.
Inflation trends in Saudi Arabia
Earlier in October, GASTAT disclosed that the annual inflation rate in Saudi Arabia held steady at 1.7 percent in September 2024, unchanged from September 2023. This stability occurred amidst a significant 9.3 percent rise in the prices of housing, water, electricity, gas, and other fuels, alongside a 0.8 percent increase in food and beverage prices. The authority also noted a 3.3 percent decline in transportation costs.
In September 2024, the inflation rate experienced a minor uptick of 0.1 percent compared to August 2024, driven by a 0.6 percent increase in the prices of housing, water, electricity, gas, and other fuels, as well as a 0.8 percent rise in actual housing rents.
Impact of housing costs
House rents saw an annual increase of 11.2 percent, which contributed significantly to last month’s inflation rate. Apartment rental prices also rose by 10 percent. The substantial 25.5 percent weight of housing, water, electricity, gas, and other fuels in the annual inflation calculation played a crucial role in this impact.
Food and beverage price changes
Food and beverage prices increased by 0.8 percent year-on-year, largely due to a 5.2 percent rise in vegetable prices. The restaurant and hotel sector experienced a 1.7 percent increase, attributed to a 1.5 percent rise in catering service prices. The education sector also saw a 1.6 percent uptick, driven by a 3.8 percent increase in fees for intermediate and secondary education. Conversely, prices for furnishing and home equipment dropped by 3.7 percent, while clothing and footwear prices decreased by 3.2 percent. Transportation costs fell by 3.3 percent, primarily due to a 4.5 percent decline in vehicle purchase prices.
Wholesale price insights
In a separate report, GASTAT announced a 3.1 percent annual increase in wholesale prices for Saudi Arabia last month. The rise in wholesale prices was largely influenced by an 8 percent increase in the prices of other transportable goods and a 12 percent rise in basic chemicals. Additionally, prices for refined petroleum products increased by 12 percent. On a monthly basis, wholesale prices rose by 0.3 percent, driven by a 0.9 percent increase in other transportable goods, bolstered by a 9.6 percent rise in basic chemical prices.
Non-oil export performance
Last week, GASTAT reported that the value of non-oil exports, including re-exports, reached SAR27.5 billion in August 2024, up from SAR25.6 billion in August 2023, marking an increase of SAR1.9 billion, or 7.4 percent. According to the authority’s International Trade Bulletin for August 2024, oil exports totaled SAR65.3 billion, down from SAR77.3 billion in August 2023, reflecting a decrease of SAR12 billion, or 15.5 percent. Furthermore, total merchandise exports fell to SAR92.8 billion in August 2024, down from SAR102.9 billion the previous year, indicating a decrease of SAR10.1 billion, or 9.8 percent. Conversely, merchandise imports for the Kingdom amounted to SAR64.8 billion in August 2024, compared to SAR67.4 billion in August 2023, a drop of SAR2.6 billion, or 3.9 percent.
 Non-oil GDP now represents 52 percent of Saudi economy
During the Future Investment Initiative (FII8) Conference, recently concluded in Riyadh, Saudi Minister of Finance Mohammed Aljadaan highlighted that non-oil GDP now accounts for 52 percent of the Saudi economy, underscoring significant advancements in economic diversification. Aljadaan emphasized that inflation is currently managed well and generally trending downward globally. He also noted the continued expansion of global trade, despite facing various challenges, reflecting a comprehensive understanding of the current economic landscape and the resilience of international markets.
For more economy news, click here.
