According to preliminary figures issued by the General Authority for Statistics on Thursday, Saudi Arabia’s economy expanded by 2.8% year on year in the third quarter, owing mostly to a robust increase in non-oil industries. The non-oil sector expanded by an astonishing 4.2%, while government activity surged by 3.1%. However, the oil sector expanded just by 0.3%.
Saudi Arabia’s GDP dropped in the second quarter, with oil activity falling nearly 9% year on year. On a quarterly basis, real GDP increased by 0.8%, demonstrating a modest rebound despite obstacles from reduced oil prices and production cuts that affect government revenue.
According to a poll prediction, Saudi Arabia’s economic growth will be at 1.3% this year, slightly lower than the International Monetary Fund’s revised prediction of 1.5%. Although oil output is forecast to climb next year, driving a turnaround in total growth, non-oil sectors remain critical to long-term expansion under the country’s Vision 2030 strategy.
Non-oil GDP, which now accounts for more than half of the entire economy, has slowed slightly, expanding at roughly 4% this year—down from the 6% average over the previous three years—but still plays an important role in economic diversity.
