The surge of the non-oil economy in Saudi Arabia at a rate of 6.1 percent, during the second quarter of 2023, led the Kingdom to raise its estimates of GDP growth from 1.1 percent to 1.2 percent.
On July 31, the General Authority for Statistics (GASTAT) issued preliminary estimates, which pointed that the GDP growth reached 1.1 percent in the second quarter of the year.
The GASTAT recent report noted that most economic activities recorded positive growth rates on an annual basis in the second quarter of 2023, with transport, storage and communication activities registering the highest rates of 12.9 percent.
This was supported by the launch of a number of developments and projects, including the official inauguration of Riyadh Air, which will start operating by 2025, according Jadwa Investment.
Wholesale and retail trade, restaurants and hotel activities also grew by 9.8 percent in the second quarter compared to the same period of 2022.
The construction sector also rebounded strongly, growing by 4 percent during the second quarter on an annual basis, in an upward trend, after nearly two years of stagnation that was mainly due to the outbreak of the Covid-19.
On Wednesday, the International Monetary Fund (IMF), in a statement issued by its Executive Board at the conclusion of the 2023 Article IV consultation with Saudi Arabia, expected that the real non-oil GDP in the Kingdom would grow by 4.9 percent during 2023, and 4.4 percent during 2024.
The statement added that the IMF Board “welcomed Saudi Arabia’s ongoing economic transformation, supported by commendable reforms under the Vision 2030 agenda and higher oil prices, which has helped create high growth, record low unemployment, contained inflation, and strong external and fiscal buffers, while reducing reliance on oil.”
The GASTAT report showed that the GDP increased by 1.2 percent in the second quarter on an annual basis, while it decreased by 0.2 percent on a quarterly basis compared to the first quarter of the year.
GASTAT further noted that the Kingdom’s oil activities decreased by 4.3 percent in the three months to the end of June, compared to the same period of the previous year, while it dropped by 1.5 percent from the first quarter of 2023.
