Wednesday, April 24, 2024

The Saudi economy grew by 1.5% in the first quarter since the outbreak began


Saudi Arabia’s real GDP grew positively for the first time since the start of the Kovit-19 epidemic, 1.5% in the second quarter of 2021, compared to the same period in 2020, the General Statistics Office said today.

According to the commission, this positive growth was due to a 10.1% increase in non-oil activities, an increase of 0.7% in government operations and a 7% decline in oil activities.

The commission said seasonal adjusted real GDP grew by 1.1% in the second quarter of 2021 compared to the first quarter of this year.

Positive growth in oil activity increased by 2.5%, while non-oil activity increased by 1.3%, while government activity declined by 2.6%.

Quick estimates provided by the General Commission for Statistics on the Growth of the Saudi Economy

The International Monetary Fund, in its global economic outlook released last July, forecast growth Saudi economy 2.4% this year and 4.8% in 2022, with growth of 2.9% in 2021 and 4% in 2022, compared to its expectations in the World Economic Outlook report last April.

In July, a quarterly Reuters survey of six economies in the Gulf Cooperation Council (GCC) is expected to grow by 2 to 3% this year.

The two largest economies in the survey region, Saudi Arabia and the United Arab Emirates, are expected to grow by more than 4% next year.

These expectations came after a sharp decline in oil prices last year and the impact of the Govt-19 epidemic, while analysts expected Saudi Arabia, the United Arab Emirates and Kuwait to benefit from the OPEC + deal to boost oil production.

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Saeed al-Sheikh, an economist, said the positive results for the quarter came as a result of measures taken by the state during and after the Corona crisis, and that the recovery began gradually from the second quarter of last year. It continued to improve until the first quarter of this year, when it reached 1.5% growth in the second quarter.

He explained that achieving non-oil sector growth of more than 10% was undoubtedly a positive thing, facing 116 billion riyals as a result of special decisions to support the private sector in the general budget. Corona epidemic, financial assistance provided by the Central Bank of Saudi Arabia.

In his speech to al-Arabiya, he said that the central bank’s support is worth about 130 billion riyals for a number of channels, including the postponement of arrears to small and medium enterprises and the extension until the first quarter of this year. As well as guarantees offered through the sponsorship scheme and support for financing small projects. And medium.

The central bank also intervened and paid more than 60 billion riyals into the banking system, and these things paved the way for the recovery, reducing the period of economic closure, except for the decisive confrontation with the corona epidemic.

He said the oil sector was gradually improving after OPEC and its partners agreed to increase production, so we note an increase in oil production in the last few months of this quarter, despite fluctuations in prices.

The Saudi economy is expected to grow by 2.5 to 3% this year, and the non-oil sector is projected to grow by more than 4%.

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Rolf Colon
Rolf Colon
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