Saudi GDP shrinks by 3 percent in Q1 as oil sector contracts

The non-oil sector recorded a positive growth rate of 2.9 percent while the private sector expanded by 4.4 percent. (Shutterstock)

• The main reason for the drop was the 11.7 percent contraction in the oil sector, the General Authority for Statistics

RIYADH: Saudi Arabia’s gross domestic product (GDP) fell by 3 percent in the first quarter compared to a year earlier, according to official data.
The main reason for the drop was the 11.7 percent contraction in the oil sector, the General Authority for Statistics, said in a report on Monday.
However the non-oil sector recorded a positive growth rate of 2.9 percent while the private sector expanded by 4.4 percent.
A weak oil output had hurt Gulf economies even before the arrival of the pandemic a year ago as reduced hydrocarbon revenues made it more difficult for governments to balance their budgets and fund major infrastructure projects.
The new data reveals that Saudi GDP per capita stood at SR19,895 in the first quarter, down by 0.43 percent from the same quarter of the previous year, but up 0.44 percent on the previous quarter.
Despite the contraction of the economy, international trade continued its strong recovery in the first quarter with imports of goods and services growing by 9.1 percent compared to 11.3 percent growth in the previous quarter. Exports increased by 1.9 percent compared to 3.6 percent growth in the previous quarter.
Private final consumption expenditure grew 6.6 percent compared to growth of 1.5 percent in the previous quarter.