{"id":85744,"date":"2024-05-02T00:00:00","date_gmt":"2024-05-02T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/05\/02\/economy-contracts-again-in-1q-2024-on-lower-oil-activity\/"},"modified":"2024-05-02T00:00:00","modified_gmt":"2024-05-02T00:00:00","slug":"economy-contracts-again-in-1q-2024-on-lower-oil-activity","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/05\/02\/economy-contracts-again-in-1q-2024-on-lower-oil-activity\/","title":{"rendered":"Economy contracts again in 1Q 2024 on lower oil activity"},"content":{"rendered":"

Saudi GDP fell 1.8% y-o-y in the first quarter of the year<\/strong>, marking the third consecutive quarter that the economy has been in contraction, according to preliminary figures from state statistics agency Gastat (pdf)<\/a>. The downturn was again due to a 10.6% decline in oil activity, which accounts for c. 40% of GDP (and about 75% of government revenues). <\/p>\n

Non-oil activity was up 2.8% y-o-y<\/strong>, with government activity also growing at a 2% clip.<\/p>\n

REMEMBER-<\/strong> 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<\/a>, maintaining production at 9 mn bpd.<\/p>\n

On a quarterly basis: <\/strong>GDP climbed 1.3% compared to the previous quarter, driven primarily by a 2.4% increase in oil activity, as well as 0.5% growth in non-oil activities. Government activity slowed by 1% q-o-q. <\/p>\n

There\u2019s still time to catch up to gov\u2019t targets: <\/strong>The Finance Ministry is targeting GDP growth of 4.4% for the current fiscal year, Finance Minister Mohamed Al Jadaan said in December<\/a>. The IMF revised its 2024 growth forecast for the Kingdom to 2.6%<\/a> last month, pointing to the combined effects of lower oil prices and production cuts.<\/p>\n

Activity could pick up later this year:<\/strong> London-based research outfit Capital Economics sees the economy recovering throughout the year, saying in a research note seen by Mubasher<\/a> that the preliminary estimate of the country\u2019s GDP this quarter is a sign that it is emerging from a recession. <\/p>\n","protected":false},"excerpt":{"rendered":"

The downturn was once again due to a decline in oil activity, which fell by 10.6% y-o-y in the last quarter<\/p>\n","protected":false},"author":1,"featured_media":85745,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2571],"tags":[27,10,335,1433,1434,159],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-85744","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-economy","tag-enterpriseam-ksa","tag-gdp","tag-general-authority-for-statistics-gastat","tag-non-oil-activity","tag-oil-watch","wpautop","entry"],"acf":{"mongo_id":"68931201-4c28-44b8-a4ed-eaf5a6ff4e7d","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/5\/118.jpg","photo_position":"above","homepage_title":"","full_issue_title":"GDP shrinks for a third consecutive quarter on the back of lower oil activity","related_issue":[85739],"teaser":"The downturn was once again due to a decline in oil activity, which fell by 10.6% y-o-y in the last quarter","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/5\/.f5db58cc-eae5-4f4d-b4a8-0f41cea59bb0.mp3"},"yoast_head":"\nEconomy contracts again in 1Q 2024 on lower oil activity - 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