Saudi Arabia’s Q1 GDP shrinks by estimated 1.8 pct

Saudi Arabia’s real gross domestic product (GDP) decreased 1.8 percent year-on-year in the first quarter, flash estimates by the government’s statistical authority showed on Wednesday, as a decline in oil activities continued to hurt overall growth.

Saudi Arabia, the world’s largest oil exporter, is pumping around 9 million barrels per day (bpd), well below its around 12 million bpd capacity after it cut production as part of an agreement with OPEC and other oil producers.

Oil activities were down 10.6 percent in the first quarter compared with the previous year, estimates from the General Authority for Statistics showed, while non-oil GDP grew 2.8 percent year on year and government activities increased 2 percent.

On a quarterly basis, seasonally adjusted growth was up 1.3 percent from the previous quarter, driven by a 2.4 percent increase in oil activities and a 0.5 percent growth in non-oil activities, although government activities decreased by 1 percent.

The Kingdom’s economy contracted 0.9 percent in 2023, the data showed, pulled lower by the oil sector, while non-oil activities grew by 4.6 percent last year.