Saudi Arabia’s real gross domestic product (GDP) grew by 1.4 percent in the first quarter (Q1) of 2024 compared to the previous quarter, according to official data.
The General Authority for Statistics (GASTAT) reported that the Kingdom’s non-oil activities also rose by 0.9 percent in the first three months of 2024 compared to the previous quarter. Additionally, non-oil activities increased by 3.4 percent year-on-year (YoY) in Q1 2024.
GDP composition and contribution
GASTAT noted that Saudi Arabia’s GDP amounted to SAR1.01 trillion ($269.33 billion) in Q1. The report highlighted the sectoral contributions, with crude oil and natural gas activities achieving the highest contribution at 23.4 percent, followed by government activities at 15.8 percent, and wholesale, retail trade, restaurants, and hotels at 10.4 percent.
However, the Kingdom’s GDP declined by 1.7 percent in Q1 2024 compared to the same period the previous year. Strengthening the non-oil private sector is crucial as Saudi Arabia continues to diversify its economy and reduce its dependence on oil.
Read more: Saudi Arabia’s non-oil private sector maintains steady growth with PMI at 56.4: Report
Government activities
The report further noted that government activities in the Kingdom rose by 2 percent YoY in Q1 2024 but declined by 1.1 percent on a quarter-on-quarter (QoQ) basis.
Oil sector performance
Saudi Arabia’s oil activities increased by 1.7 percent in Q1 2024 compared to the previous quarter, but dipped by 11.2 percent YoY due to the country’s reduced crude production in line with OPEC+ decisions.
OPEC+ production cuts
In April 2023, Saudi Arabia reduced its oil output by 500,000 barrels per day, and this cut has now been extended until December 2024 to maintain market stability.
Economic growth outlook
The International Monetary Fund and the World Bank have both revised upwards their growth projections for the Saudi economy in 2025, to 2.6 percent and 5.9 percent respectively.
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