Saudi Arabia’s Real GDP Sees 1.3% Rise in Q1 2024
In a recent report by the General Authority for Statistics, Saudi Arabia’s real gross domestic product experienced a 1.3% increase in the first quarter of 2024 compared to the previous quarter. This growth was driven by a 2.4% rise in oil activities and a 0.5% increase in non-oil activities during the same period.
However, government activities in the Kingdom saw a decline of 1% in Q1 2024 compared to the last quarter of 2023. On a year-on-year basis, Saudi Arabia’s real GDP decreased by 1.8% in the first quarter of 2024, primarily due to a 10.8% drop in oil activities.
This decline in oil activities can be attributed to the Kingdom’s decision to reduce crude output in line with an agreement by OPEC+. To maintain market stability, Saudi Arabia decreased its oil production by 500,000 barrels per day in April 2023, a measure that has been extended until December 2024.
Non-Oil Activities Drive Growth in Saudi Arabia
While oil activities experienced a decline, non-oil activities in Saudi Arabia witnessed a 2.8% year-on-year increase in the first quarter of 2024. Government activities also saw a growth of 2% during the same period. Strengthening the non-oil private sector is essential for the Kingdom as it continues to reduce its reliance on oil in line with Vision 2030.
International Trade Report Highlights
On April 30, GASTAT released an international trade report revealing that Saudi Arabia’s non-oil exports, including re-exports, decreased by 13.7% to SR272.37 billion ($72.62 billion) in 2023 compared to the previous year. The analysis also showed a 22.2% decline in overall merchandise exports in 2023, primarily driven by a decrease in oil exports.
Meanwhile, Saudi Arabia’s imports rose by 9% in 2023 to SR776 billion compared to the previous year. The trade balance surplus for the Kingdom stood at SR424 billion in 2023. China emerged as Saudi Arabia’s top trading partner, with significant exports to other countries like Japan, India, the US, and the UAE.
Overall, the report provided valuable insights into the Kingdom’s trade patterns and the importance of diversifying its economy beyond oil.