According to government estimates, Saudi Arabia’s economy increased for the first time since the Covid-19 outbreak in the second quarter, fuelled by a 10.1% increase in the non-oil sector.
Economists forecast faster growth in the second half of the year, with the oil sector benefiting from increasing output, based on the data, which showed the economy growing 1.5% from a year ago. Monica Malik, chief economist at Abu Dhabi Commercial Bank, commented: “The quarterly GDP growth points to a further pick-up in activity, with the oil sector benefiting from higher production.”
The economy of the Kingdom shrank last year as a result of the Covid-19 outbreak and decreasing oil prices. However, the General Authority for Statistics in Saudi Arabia announced in a statement that seasonally adjusted real gross domestic product increased by 1.1% in the second quarter compared to the first.
Seasonally adjusted real gross domestic product increased by 1.1% in the second quarter compared to the first
According to the International Monetary Fund, the Saudi economy is expected to rise by 2.4% this year. With further loosening of the pandemic curbs and oil producers’ commitment to expand output, Capital Economics economist James Swanston believes it might grow twice as fast. “Overall, we have pencilled in real GDP growth of 4.8% this year and 6.3% year-on-year in 2022,” Swanston said.