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Saudi Arabia’s annual GDP contracts by 3.3% in Q1

Saudi Arabia’s annual GDP contracts by 3.3% in Q1
Seasonally adjusted Saudi GDP declined by 0.1% on a quarterly basis

Riyadh – Mubasher: Saudi Arabia’s gross domestic product (GDP) witnessed a negative annual real growth rate of 3.3% during the first quarter (Q1) of 2021, compared to the same quarter of the previous year, according to flash estimates.

The Saudi General Authority for Statistics (GaStat) attributed the annual change in GDP to a 12% decrease in oil activities due to the ongoing crude oil production cuts by OPEC members since May 2020.

Saudi Arabia’s non-oil activities registered an increase of 3.3%, while government service activities went up 0.3%. This was the first positive annual growth rate for non-oil activities after the COVID-19 pandemic, according to data by GaStat.

On a quarterly basis, the seasonally adjusted real GDP of the Kingdom also showed a negative growth rate of 0.1%, when compared to Q4-20. The marginal decline was mainly due to a plunge of 5.1% in oil activities from additional crude oil production cuts that started in February 2021.

Non-oil activities and government service activities registered a positive growth of 4% and 0.5%, respectively, quarter-on-quarter (QoQ) in Q1-21.