Saudi Arabia's Q1 GDP Contracts by 1.7% Year-on-Year

KSA, 10 June, 2024 : Saudi Arabia's real GDP shrank by 1.7% in the first quarter of 2024 compared to the same period last year, according to preliminary data released by the General Authority for Statistics. This decline marks the third consecutive quarter of year-on-year contraction for the kingdom, primarily due to reduced oil production and lower crude prices.

In the fourth quarter of 2023, the GDP had contracted by 3.7%. The persistent decline in oil activities, which were down 11.2% in the first quarter compared to the previous year, has significantly impacted overall economic growth.

Despite the downturn in the oil sector, non-oil GDP showed resilience, growing by 3.4% year-on-year. Additionally, government activities contributed positively, increasing by 2%. These figures highlight the ongoing efforts to diversify the economy and reduce dependency on oil revenues.

The Saudi government has been implementing various initiatives to stimulate non-oil sectors and enhance economic stability, yet the fluctuating oil market continues to pose challenges.

Source : www.zawya.com