Drop in oil revenue eats into Saudi GDP growth
Saudi Arabia Sunday announced a 0.3 per cent year-on-year decline in real gross domestic product (GDP) for the second quarter of 2024, mainly due to an 8.9-per cent year-on-year drop in oil revenue during the period.
Riyadh: Saudi Arabia Sunday announced a 0.3 per cent year-on-year decline in real gross domestic product (GDP) for the second quarter of 2024, mainly due to an 8.9-per cent year-on-year drop in oil revenue during the period.
The Kingdom however said its non-oil activities expanded 4.9 per cent year-on-year in the same period, driven by gains in the financial and insurance sectors.
According to official data released by the country’s General Authority for Statistics (GASTAT), which also showed that the kingdom’s seasonally adjusted real GDP grew by 1.4 per cent compared to the previous quarter.
In particular, electricity, gas and water activities achieved the highest growth rate in the second quarter, hitting 8.9 per cent year-on-year, the report showed.
Cut in crude output
Regarding the drop in oil revenue, the report said its because the Kingdom’s decision to cut crude output in line with OPEC+ agreements.
To stabilize the market, Saudi Arabia reduced oil production by 500,000 barrels per day in April 2023, a cut that has been extended until December 2024.
GASTAT also noted that the Kingdom’s GDP at current prices reached SR1.02 trillion ($270 billion) in the second quarter.
“Crude oil and natural gas activities achieved the highest contribution to the GDP at 23.2 percent, followed by government activities at 16 percent, and wholesale and retail trade, restaurants, and hotels activities with a contribution of 10.1 percent,” stated GASTAT.
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