Arabia’s real gross domestic product recorded a 1.2 percent year-on-year growth in the second quarter of 2023, thanks to a 6.1 percent surge in the non-oil sector, official data showed.
According to the latest report from the General Authority for Statistics, the Kingdom’s non-oil sector witnessed a 1.6 percent increase compared to the first three months of the year, reflecting the ongoing diversification efforts in the nation’s economy.
Strengthening the non-oil private sector is a key agenda of Saudi Arabia’s Vision 2030, as the Kingdom’s economy is steadily reducing its dependence on oil.
The report, however, added that Saudi Arabia’s seasonally adjusted real GDP fell by 0.2 percent year on year in the second quarter.
GASTAT further noted that the Kingdom’s oil activities decreased by 4.3 percent in the three months to the end of June, compared to the same period of the previous year, while it dipped by 1.5 percent from the first quarter of 2023.
The decline in Saudi Arabia’s oil activities is in line with the decision of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to reduce the crude output to maintain market stability.
In April, OPEC+ decided to reduce global oil production, with Saudi Arabia voluntarily trimming output by 500,000 barrels per day.
Building on this commitment, Saudi Arabia implemented an additional 1 million bpd cut in June, a decision which was later extended until December 2023.—AN
