Saudi Arabia’s economic system slowed within the second quarter as oil-production cuts and a drop in costs pushed the nation from being one of many fastest-growing Group of 20 international locations to one of many slowest.
Gross home product expanded 1.1 % on an annual foundation, in line with preliminary information launched by the Common Authority for Statistics. That compares with 3.8 % within the earlier quarter and 11 % a yr earlier.
The non-oil sector — the place most Saudis are employed and which authorities needs to develop to diversify the economic system — expanded 5.5 %. Oil GDP dropped 4.2 %.
Earlier this month, the dominion obtained the most important downgrade amongst main economies from the Worldwide Financial Fund. The fund minimize the dominion’s development outlook for 2023 to 1.9 %, a downward revision of 1.2 proportion factors from the Washington-based lender’s earlier estimate.
Financial development reached practically 9 % final yr, the quickest within the G-20, pushed by file crude output of round 10.5 million barrels a day and costs averaging about $100 a barrel as Russia’s invasion of Ukraine roiled vitality markets.
This yr, steep cuts in manufacturing supposed to shore up crude costs have pushed Saudi oil output to the bottom in years. Brent is buying and selling round $84.60 a barrel, down 1.6 % because the finish of 2022.
The $1 trillion economic system’s receipts from oil gross sales overseas declined by greater than a 3rd in Might to the bottom since September 2021.
–With help from Abeer Abu Omar.