عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Non-Oil Sector Grows 4.9% in Q2, Exceeding Estimates

Data from the General Authority for Statistics (GASTAT) show a 0.3% contraction in real GDP in the second quarter (Asharq Al-Awsat)
Data from the General Authority for Statistics (GASTAT) show a 0.3% contraction in real GDP in the second quarter (Asharq Al-Awsat)
TT
TT

Saudi Non-Oil Sector Grows 4.9% in Q2, Exceeding Estimates

Data from the General Authority for Statistics (GASTAT) show a 0.3% contraction in real GDP in the second quarter (Asharq Al-Awsat)
Data from the General Authority for Statistics (GASTAT) show a 0.3% contraction in real GDP in the second quarter (Asharq Al-Awsat)

Saudi Arabia's non-oil economy grew by 4.9% year-on-year in the second quarter of 2024, beating the July estimate of 4.4%.

According to the General Authority for Statistics (GASTAT), this is the highest growth rate in a year, up from 3.4% in the first quarter of 2024 and 4.2% and 3.2% in the last two quarters of 2023.

The IMF forecasts that Saudi Arabia’s non-oil GDP growth will stay strong.

Its latest report says that smart economic policies, transformative reforms, and increased investment have driven this growth, pushing employment above pre-COVID levels. Continuing these efforts is key to maintaining growth and diversifying the economy.

The IMF also predicts that reform momentum will rise in 2025 with more investment, especially from the Public Investment Fund, which plans to boost its annual investments from $40 billion to $70 billion.

This is in preparation for major events like the 2027 AFC Asian Cup, the 2029 Winter Asian Games, and Expo 2030. Full execution of the national investment strategy could push non-oil GDP growth to 8%.

Saudi authorities project non-oil growth to stay at 4% in 2024 and are confident that Vision 2030 will help sustain this growth long-term.

The General Authority for Statistics reported a 0.3% decline in real GDP in the second quarter of 2024 compared to the same period last year, better than the 0.4% drop expected.

Compared to the first quarter of 2024, seasonally adjusted real GDP grew by 1.4%. Non-oil sectors grew 4.9% year-on-year and 2.1% quarter-on-quarter.

Oil sector activity fell 8.9% year-on-year, slightly worse than the July estimate of 8.5%, but rose 0.9% quarter-on-quarter.

Government activities grew 3.6% year-on-year and 2.3% quarter-on-quarter.

Most Viewed

 
 
Business

China Mulls Draft Law to Promote Private Sector Development

A Chinese national flag flutters on a financial street in Beijing. (Reuters)
A Chinese national flag flutters on a financial street in Beijing. (Reuters)
TT
TT

China Mulls Draft Law to Promote Private Sector Development

A Chinese national flag flutters on a financial street in Beijing. (Reuters)
A Chinese national flag flutters on a financial street in Beijing. (Reuters)

Chinese lawmakers are deliberating a draft of the country's first basic law specifically focused on the development of the private sector, the country’s Xinhua news agency reported.

“The law will be conducive to creating a law-based environment that is favorable to the growth of all economic sectors, including the private sector,” said Justice Minister He Rong, while explaining the draft on Saturday during the ongoing session of the Standing Committee of the National People's Congress, the national legislature.

The draft private sector promotion law covers areas such as fair competition, investment and financing environments, scientific and technological innovation, regulatory guidance, service support, rights and interests protection and legal liabilities.

The draft has incorporated suggestions solicited from representatives of the private sector, experts, scholars and the general public, the minister said.

China left its benchmark lending rates unchanged as expected at the monthly fixing on Friday.

Persistent deflationary pressure and tepid credit demand call for more stimulus to aid the broad economy, but narrowing interest margin on the back of fast falling yields and a weakening yuan limit the scope for immediate monetary easing.

The one-year loan prime rate (LPR) was kept at 3.10%, while the five-year LPR was unchanged at 3.60%.

In a Reuters poll of 27 market participants conducted this week, all respondents expected both rates to stay unchanged.

Morgan Stanley said in a note that the 2025 budget deficit and mix are more positive than expected and suggest Beijing is willing to set a high growth target and record fiscal budget to boost market confidence, but further policy details are unlikely before March.

Last Friday, data released by the country's central bank said total assets of China's financial institutions had risen to 489.15 trillion yuan (about $68.03 trillion) by the end of third quarter this year.

The figure represented a year-on-year increase of 8%, said the People's Bank of China.

Of the total, the assets of the banking sector reached 439.52 trillion yuan, up 7.3% year on year, while the assets of securities institutions rose 8.7% year on year to 14.64 trillion yuan.

The insurance sector's assets jumped 18.3% year on year to 35 trillion yuan, the data showed.

The liabilities of the financial institutions totaled 446.51 trillion yuan, up 8% year on year, according to the central bank.

Separately, data released by the National Energy Administration on Thursday showed that China's electricity consumption, a key barometer of economic activity, rose by 7.1% year on year in the first 11months of the year.

During the period, power consumption of the country's primary industries increased by 6.8% year on year, while that of its secondary and tertiary sectors rose by 5.3% and 10.4%, respectively.

Residential power usage saw strong growth of 11.6% during this period, the administration said.

In November alone, power usage climbed 2.8% from one year earlier, according to the data.