Saudi GDP and Oil Economy Shrank 3% and 11.7%, Respectively; Non-Oil Economy Grew 2.9%
June 15, 2021
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Email Official data from the General Authority for Statistics revealed that Saudi Arabia’s gross domestic product (GDP) contracted 3% compared to the prior-year period in the first quarter of 2021 (1Q 2021). This has been mainly attributed to the 11.7% shrinking in the oil sector during 1Q21, however, the non-oil sector grew 2.9% and the private sector was up 4.4%.
Why it Matters?
Even before the start of COVID-19 a year ago, low oil output had harmed Gulf economies, as diminished hydrocarbon revenues made it more difficult for governments to balance their budgets and fund significant infrastructure projects. Despite the economy's decline, international trade remained strong in 1Q 2021, with imports of goods and services increasing 9.1%.
