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Saudi Arabia’s Economy Hits Trillion for Fourth Consecutive Quarter
Saudi Arabia’s economy hit a trillion in output for the fourth straight quarter, after a current price gross domestic product value of 1.005 trillion rials in the first quarter of 2023, according to Al-Eqtisadiah.
Report Shows Growth in GDP
In its report, an analysis by the reporting department of Al-Eqtisadiah newspaper showed that the gross domestic product was 1.09 trillion rials in the second quarter of 2022, 1.07 trillion rials in the third quarter, and 1.02 trillion rials in the fourth quarter of 2022. In the same year.
The Al-Eqtisadiah report found that Saudi Arabia’s constant price year-on-year gross domestic product rose 3.8% in the first quarter of this year, compared to 3.9% in quick estimates.
And the newspaper pointed out that the growth recorded in the first quarter of 2023 is the eighth quarterly increase (since the first quarter of 2021) after seven quarters of decline due to the outbreak of the Corona virus pandemic.
So far, this is despite the fact that this growth is the lowest since the second quarter of 2021, when it rose by 3.1%, the report said.
GDP is Divided into Two Regulatory Sectors
Saudi Arabia’s GDP consists of two regulatory sectors: the oil sector and the non-oil sector, which includes the private and public sectors.
The Al-Eqtisadiah report said that the domestic product of the oil sector rose by 1.4% as a result of a slight increase in oil production, which is the lowest since the second quarter of 2021, when it fell by 7%, and this comes at a time when oil prices fell from the same period last year (Q1 2022), and the non-oil sector led economic growth after rising by 5.4%, continuing its growth for the ninth consecutive quarter (from a decrease of 1% in the fourth quarter of 2020 ).
According to Al-Eqtisadiah, this growth is the result of government stimulus in light of the dependence of the Saudi Vision 2030 on the private sector, as it aims to increase its contribution to GDP to 65 percent by 2030, while its share in 2019 was 40.7% of production.
The International Monetary Fund expects Saudi Arabia’s non-oil sector growth to remain around 5 percent this year, driven by high spending and project implementation and their role in boosting demand.
In the first quarter of this year, the public sector grew by 4.9%.
And the newspaper stated that on a quarterly basis, gross domestic product decreased by 1.4% compared to the fourth quarter of 2022, as a result of a decline in the oil sector by 4.7%, while in the non-oil sector it grew by 1%, while the public sector by 1.1%.
Expectations for Economic Growth
The Saudi government expects to achieve economic growth of 3.1% this year, which is also in line with the forecast of the International Monetary Fund.
What is Gross Domestic Product?
It is worth noting that gross domestic product is defined as the market value of all locally recognized final goods and services produced in a country during a given period of time.
Source: The Economist.