Saudi Arabia’s economy grew 3.9 pct in first quarter of 2023

Saudi Arabia’s economy grew by 3.9 percent year-on-year in the first quarter of 2023, according to initial government estimates of real gross domestic product on Sunday, led by growth in non-oil activities.

Non-oil activities grew by 5.8 percent in the first quarter from a year prior, the General Authority for Statistics said, citing flash estimates, while oil activities grew by 1.3 percent.

Government services activities grew by 4.9 percent, it said.

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

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

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