Saudi Arabia's GDP experienced a year-on-year growth of 1.2 percent in the second quarter of 2023, primarily driven by a substantial 6.1 percent expansion in the non-oil sector, as per official data released by the General Authority for Statistics. The non-oil sector also saw a 1.6 percent increase when compared to the first quarter of the same year, reflecting ongoing efforts to diversify the nation's economy. This aligns with Saudi Arabia's Vision 2030 initiative, which aims to strengthen the non-oil private sector and reduce the country's reliance on oil.

However, the report indicated that Saudi Arabia's seasonally adjusted real GDP declined by 0.2 percent year on year in the second quarter. This dip can be attributed to a 4.3 percent decrease in the Kingdom's oil activities in the three months ending in June, compared to the same period the previous year. Additionally, there was a 1.5 percent drop from the first quarter of 2023. This decline in oil activities is in line with the decision of OPEC+ to reduce crude oil output to maintain market stability. In April, OPEC+ decided to decrease global oil production, with Saudi Arabia voluntarily reducing its output by 500,000 barrels per day. Building on this commitment, Saudi Arabia implemented an additional 1 million barrels per day cut in June, which was later extended until December 2023.