Saudi Arabia economy grew 3.8% in Q1 boosted by non-oil activities
Crude petroleum and natural gas contributed 32.7% of Saudi Arabia’s GDP last year
Riyadh: Saudi Arabia’s economy grew by 3.8 per cent year on year in the first-quarter of 2023, the General Authority for Statistics said on Thursday, broadly in line with estimates released last month.
Non-oil activities grew by 5.4 per cent in Q1 while oil activities grew by 1.4 per cent and government service activity was up by 4.9 per cent, official government data showed.
The statistics authority had estimated growth of 3.9 per cent in the first quarter when it released flash estimates in May.
The Saudi economy grew 8.7 per cent last year, as high oil prices boosted revenue and led to the kingdom’s first budget surplus in almost 10 years.
However, oil prices remain muted this year amid an uncertain demand outlook, despite moves by the kingdom which is the world’s top oil exporter to make voluntary production cuts, the latest of which was announced on Sunday.
On Wednesday, the International Monetary Fund (IMF) said it expects growth in Saudi Arabia to slow to 2.1 per cent in 2023, lower than its May forecast, on the back of OPEC+ production cuts announced in April.
In its latest Article IV mission concluding statement, the IMF said that while April’s cuts would reduce overall growth to 2.1 per cent, non-oil growth is expected to remain robust.
Crude petroleum and natural gas contributed 32.7 per cent of Saudi Arabia’s gross domestic product last year, with petroleum refining making up another 6 per cent.