Saudi Arabia Reports 1.3% GDP Growth in Q4 2024 Driven by Non-Oil Activities
Government data reveals modest economic growth bolstered by increased non-oil and government activities despite a decline in oil sector performance.
Government data released on Sunday indicated that Saudi Arabia's economy grew by 1.3% year-on-year in the fourth quarter of 2024, primarily driven by an increase in non-oil activities and government initiatives.
According to figures from the General Authority for Statistics, the non-oil sector expanded by 4.3%, while government activities experienced a growth of 2.6%.
In contrast, oil-related activities saw a contraction of 4.5%.
Despite the quarterly growth, analysts anticipate that the overall economic growth for Saudi Arabia, the world's largest oil exporter, will remain subdued throughout the year as the impact of lower oil prices continues to affect government revenues.
The OPEC+ coalition, which includes the Organization of the Petroleum Exporting Countries (OPEC) led by Saudi Arabia and allies such as Russia, is planning to increase oil production starting in April.
This decision marks the end of production cuts that have been gradually implemented since 2022 to support oil market stability.
Experts surveyed have projected that the Saudi economy will grow by 1.3% this year, representing slightly more conservative estimates compared to the recently adjusted forecasts by the International Monetary Fund (IMF), which predicted a growth rate of 1.5%.
Furthermore, this rate positions Saudi Arabia among the slowest growing economies within the Gulf Cooperation Council (GCC) region.
According to figures from the General Authority for Statistics, the non-oil sector expanded by 4.3%, while government activities experienced a growth of 2.6%.
In contrast, oil-related activities saw a contraction of 4.5%.
Despite the quarterly growth, analysts anticipate that the overall economic growth for Saudi Arabia, the world's largest oil exporter, will remain subdued throughout the year as the impact of lower oil prices continues to affect government revenues.
The OPEC+ coalition, which includes the Organization of the Petroleum Exporting Countries (OPEC) led by Saudi Arabia and allies such as Russia, is planning to increase oil production starting in April.
This decision marks the end of production cuts that have been gradually implemented since 2022 to support oil market stability.
Experts surveyed have projected that the Saudi economy will grow by 1.3% this year, representing slightly more conservative estimates compared to the recently adjusted forecasts by the International Monetary Fund (IMF), which predicted a growth rate of 1.5%.
Furthermore, this rate positions Saudi Arabia among the slowest growing economies within the Gulf Cooperation Council (GCC) region.
Translation:
Translated by AI
