Saudi Arabia economy grew 3.9 per cent in Q1 boosted by non-oil activities

Saudi Arabia’s economy grew by 3.9 per cent year-on-year in the first quarter of 2023, according to initial government estimates of real gross domestic product published on Sunday.

Non-oil activities grew by 5.8 per cent in the first quarter from a year prior, the General Authority for Statistics said, citing flash estimates, while oil activities grew by 1.3 per cent. Government services activities grew by 4.9 per cent, it said.

However, growth slowed compared to the fourth quarter of 2022, when GDP grew 5.5 per cent year-on-year.

Seasonally adjusted real GDP decreased by 1.3 per cent in the first quarter of this year, compared with the previous quarter as a result of a decline in oil activities by 4.8 per cent, the report said.

The IMF says the Saudi economy grew 8.7 per cent last year, but projects that Saudi GDP growth will more than halve to 3.1 per cent, this year.

Saudi Arabia last month said it would cut oil output by 500,000 barrels per day from May, part of further cuts by OPEC+ oil producers of around 1.16 million bpd.