Saudi GDP dipped 0.4% y-o-y in 2Q 2024, marking the fourth consecutive quarter of contraction, according to preliminary figures from state statistics agency Gastat (pdf. The second quarter saw the slowest rate of contraction in the series. The downturn came on the back of lower oil activity, which recorded an 8.5% y-o-y decline. Oil activity accounts for c.40% of GDP and about 75% of government revenues. Bloomberg also had the story.

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Non-oil activity was up 4.4% y-o-y and government activity was also up 3.6% y-o-y during the quarter.

REMEMBER- The Kingdom cut oil production by 500k barrels per day in April 2023 in a bid to arrest falling oil prices. That figure became a 1 mn bpd voluntary cut by June. Though originally seen ending in December 2023, the government extended the 1 mn bpd cut through 1Q 2024 and now seems poised to continue it through June 2024, maintaining production at 9 mn bpd.

Compared to 1Q: GDP climbed 1.4% compared to the previous quarter, with growth buoyed by government activity — which rose 3.2% q-o-q — and non-oil activity (up 1.4% q-o-q). Oil activity was also up 1.3% compared to the previous quarter.

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