Saudi Arabia’s Estimated 2020 Gross Domestic Product Witnesses Sharpest Contraction in Over Thirty Years

Saudi Arabia’s gross domestic product (GDP) fell 3.8% year-on-year (YoY) in the fourth quarter of 2020 (4Q 2020), with flash estimates from the General Authority for Statistics indicating a 4.1% YoY projected decline in GDP for the full year 2020.

Whilst this is in line with estimates from the International Monetary Fund, it represents the sharpest decline in GDP experienced in over three decades. According to the media report, the decline in crude oil prices significantly reduced revenue, coupled with the spread of COVID-19-related restrictions on economic activity for Saudi Arabia.

Saudi Arabia’s Crown Prince Mohammed bin Salman has been pushing hard to diversify the economy away from its reliance on oil as part of the Vision 2030 plan. One of the key V...