Saudi Arabia’s Industrial Production Index Sees Growth in Manufacturing Activities
In April, Saudi Arabia’s Industrial Production Index reached 105.6 points, showing a 1.1 percent increase compared to the previous month, according to official data.
Manufacturing Operations Drive Growth
The General Authority for Statistics reported a 2.4 percent month-on-month rise in manufacturing operations, reaching 119.1 points. This growth was fueled by a surge in chemical product production, which increased by 3.1 percent. Additionally, a 1.9 percent increase in the production of coke and refined petroleum products contributed to the manufacturing sub-index growth.
Impact of Oil Output Reduction
Despite the growth in manufacturing activities, Saudi Arabia’s overall IPI decreased by 6.1 percent in April compared to the previous year. This decline was mainly due to the Kingdom’s decision to reduce oil output as per the OPEC+ agreement, with oil production reduced to 8.9 million barrels per day.
Positive Trends in Manufacturing Sector
On a positive note, manufacturing activities in the Kingdom saw a 7.7 percent increase in April compared to the same period last year. Similarly, electricity, gas, steam, and air conditioning supply activities recorded a 6.5 percent annual increase, while water supply, sewerage, waste management, and remediation activities decreased by 2.8 percent.
Economic Growth in the Kingdom
GASTAT revealed that Saudi Arabia’s gross domestic product achieved a growth rate of 1.4 percent in the first quarter of 2024, compared to the previous quarter. Additionally, non-oil activities in the Kingdom witnessed a 3.4 percent year-on-year growth in the first quarter of the year.