S. Arabia’s GDP shrinks by 1.8% in Q1 ’24

Saudi Arabia’s real Gross Domestic Product (GDP) experienced a 1.8 per cent decline in the first quarter of 2024 when compared to the same period in 2023, according to preliminary data from the General Authority for Statistics (GASTAT).

As per the report, this downturn was mainly influenced by a significant 10.6 per cent decrease in oil-related activities. On the other hand, non-oil sectors saw a 2.8 per cent rise, and government activities expanded by 2.0 per cent annually.

The International Monetary Fund (IMF) adjusted its forecast for Saudi Arabia’s 2024 GDP growth to 2.6 from 2.7 per cent, but anticipates a rebound to between 5.5 and 6 per cent in 2025, making it the second-highest growth rate among major economies, behind only India. If achieved, this would mark one of the kingdom’s most rapid growth periods in the past decade, according to Bloomberg.