Economic Growth: Saudi Arabia domestic product (GDP) grew at a pace of 1.4%. In the first quarter of 2024, continuing the country’s consistent economic growth. Moreover, Despite being modest, this growth is indicative of the nation’s continuous efforts to diversify its economy. And lessen its reliance on oil earnings. The actual gross domestic product of Saudi Arabia increased by 1.4% in the first quarter. During this year compared to the previous quarter, according to official data.
The General Authority for Statistics’ study states that during the first three months of this year, the Kingdom’s non-oil businesses grew by 0.9 percent over the previous quarter. In addition, during the first quarter of 2024, non-oil activity grew by 3.4 percent on an annual basis. Furthermore, according to GASTAT, Saudi Arabia’s GDP for the first quarter was SR1.01 trillion ($270 billion).
Steady Growth: Dive into Statistics
Activities related to crude oil and natural gas accounted for the largest share of GDP, contributing 23.4 percent. Government activities came in second, contributing 15.8 percent. And wholesale and retail trade, restaurants, and hotel operations came in third, contributing 10.4 percent, as per the data from GASTAT.
Economic Growth: Saudi Arabia’s GDP contracted by 1.7% in the first quarter compared to the same period the previous year. In order to lessen its long-term reliance on oil, Saudi Arabia is gradually diversifying its economy, making it imperative to strengthen the non-oil private sector. According to the report, government activities in the Kingdom experienced a 2 percent year-over-year increase in the first quarter, but a 1.1 percent quarter-over-quarter decline.
According to GASTAT, Saudi Arabia’s oil-related operations rose 1.7% in the first quarter over the prior quarter. However, oil operations decreased by 11.2 percent year over year as a result of Saudi Arabia’s cut in crude production in compliance with the decision of the Organization of the Petroleum Exporting Countries and its allies, or OPEC+.
To maintain market stability, Saudi Arabia reduced its oil output by 500,000 barrels per day in April 2023. This reduction has later been extended until December 2024. The Saudi Arabian economy is expected to increase by 2.6 percent in 2024 and 6 percent in 2025, according to a forecast released by the International Monetary Fund in April. The World Bank also upgraded the Kingdom’s economy’s growth projections in the same month, from 4.2 percent to 5.9 percent in 2025.
MFD’s Perspective
The rise in GDP serves as an essential factor in driving growth in the Kingdom. MFD Business Solutions also plays crucial role in driving growth in the Kingdom through supporting, startups, SMEs and SMBs. MFD is a platform where imaginations are turned into realities. For further details visit our LinkedIn account.
Conclusion
The 1.4% GDP increase in the first quarter of 2024 in Saudi Arabia is indicative of a steadily expanding and stable economy. Moreover, propelled by deliberate investments and diversification initiatives. The kingdom is well-positioned to achieve sustainable economic growth. Certainly, lessen its reliance on oil, and develop a thriving, diversified economy. Which is going forward as it continues to carry out Vision 2030 objectives.