Saudi Arabia’s GDP grows 8.8 per cent year-on-year in third quarter

Saudi Arabia’s economy grew by 8.8 per cent in the third quarter of 2022 compared to the same period a year earlier, mainly due to a sharp increase in oil-related activity, according to official estimates released on Sunday.

Oil activities grew by 14.2 per cent year-on-year in the third quarter, but GDP growth was also boosted by 6 per cent growth in non-oil activities, the General Authority of Statistics data showed, though non-oil activity fell 0.5 per cent quarter-on-quarter.

Saudi Arabia said last week it expects to post a second consecutive budget surplus in 2023, though down 84 per cent from this year as an uncertain global economic outlook and lower crude prices look set to weigh on the top oil exporter’s revenues.

The statistics authority said GDP at current prices amounted to 1.036 trillion riyals ($275.53 billion) in the third quarter, with crude petroleum and natural gas activities contributing 35.2 per cent. The non-oil private sector contributed 50.7 per cent to the overall GDP.

Finance minister Mohammed Al Jadaan said last week that the kingdom has revised its GDP forecast for 2022 upwards to 8.5 per cent, from the previous 8 per cent, attributing the adjustment “largely” to non-oil private sector activity which is forecast to grow around 6 per cent annually over the next three to five years.

($1 = 3.7600 riyals)