- The General Authority for Statistics announced that Saudi Arabia experienced a 3.8 percent year-on-year growth in its economy during the first quarter of 2023.. The data further reveals that non-oil activities expanded by 5.4 percent during Q1, while oil activities saw a growth of 1.4 percent. Additionally, government service activity increased by 4.9 percent.
- In May, the statistical authority provided initial estimates indicating a 3.9 percent growth in the first quarter. With the rise in oil prices, the Saudi economy experienced a remarkable growth of 8.7 percent last year, resulting in the kingdom's first budget surplus in nearly a decade.
Why it matters
Despite the efforts made by the world's leading oil exporter, Saudi Arabia, to implement voluntary production cuts, oil prices have remained subdued this year due to uncertain demand projections. The most recent production cut was announced on Sunday. According to the International Monetary Fund (IMF), Saudi Arabia's growth is predicted to decrease to 2.1 percent in 2023, which is lower than the forecast given in May. This slowdown is attributed to the OPEC+ production cuts announced in April.
