The Saudi economy achieved its first quarterly growth in two years in the second quarter of the current year, supported by notable growth in non-oil activities, according to data from the General Authority for Statistics released today, Monday.
**Key Indicators for the Second Quarter on a Yearly Basis:**
- The total Saudi GDP increased by 1.5% compared to a contraction of 7%.
- The GDP of the oil sector contracted by 7% compared to a contraction of 5.3%.
- The GDP of the non-oil sector grew by 10.1% compared to a contraction of 10.3%.
**Key Indicators for the Second Quarter on a Quarterly Basis:**
- The total Saudi GDP increased by 1.1% compared to a contraction of 0.5%.
- The GDP of the oil sector grew by 2.5% compared to a contraction of 8.8%.
- The GDP of the non-oil sector grew by 1.3% compared to a growth of 6.3%.
Mary Salem, an economic analyst at Al-Sharq TV, stated that the quarterly growth of oil activities by 2.5% comes amid a recovery in oil prices during the past period, driven by increased demand for crude oil. She noted that the remarkable growth in non-oil activities supports the current direction of the Saudi government under Vision 2030, focusing on non-oil output. The 10% growth in the non-oil economy on a yearly basis reflects the Kingdom's focus on trade, manufacturing, and the real estate sector. Regarding the oil sector's performance, there is some improvement when comparing year on year.
Salem added, "Despite rising oil prices and increased demand, the Kingdom continues its policy aimed at reducing reliance on oil for public revenues and as a percentage of GDP, while expanding reliance on other economic activities."
The International Monetary Fund (IMF) expects the Saudi economy to achieve growth of 2.4% during the current year 2021, following a contraction of 4.1% in 2020 due to a dual shock from the COVID-19 pandemic and falling oil prices.
