Initial government estimates – issued today, Thursday, showed that the Saudi economy returned to growth in 2024, as the real GDP increased 1.3% compared to the previous year, with the non -oil sector support for the gross domestic product.
Today, the General Authority for Statistics issued rapid estimates that also showed that the growth of GDP increased 4.4% in the fourth quarter of 2024 compared to the same period in the previous year, which is the highest quarterly growth rate in two years, with the support of non -oil activities that recorded 4.6% growth.
The performance of non -oil activities in GDP in 2024 also exceeded 4.3%, while oil activities fell 4.5% and government activities achieved 2.6% growth.
The Kingdom’s economy shrinks 0.8% in 2023 after it threw oil production cuts and its prices declined to grow in the largest source of crude in the world.
The extension of oil production cuts between the members of the OPEC Plus coalition, which Saudi Arabia is a major member of it, continued to influence the growth of GDP in the Kingdom.
The International Monetary Fund reduced its expectations for the growth of Saudi GDP in 2025 to 3.3%, due primarily to the extension of oil production discounts, and the fund also reduced its forecast for 2026.
The Fund expected the Kingdom to record a growth in 2024 by about 1.4%, which is higher than the Saudi government estimates at 0.8%.
#General Authority for Statistics Fast estimates are published for GDP growth rates for the year 2024 AD.
– The General Authority for Statistics (@stats_saudi) January 30, 2025
“We need caution when we look at the gross domestic product as a measure of growth, because there is a need to look at other indicators,” said Finance Minister Mohamed Al -Jadaan – during the World Economic Forum in Davos, Switzerland – earlier this month.
He added that “the gross domestic product number is not a truly measure. Our focus is on the gross non -oil GDP that has achieved very good growth over the past few years, and we are likely to see this growth increasing in the medium term.”
The Kingdom, which will host major global sporting events during the next decade, face pressure on time schedules to deliver huge infrastructure projects within the goals of the economic transformation to get rid of dependence on oil.
The Kingdom expected a financial deficit of 27 billion dollars in 2025 and expects a deficit equivalent to about 3% of the gross domestic product over the next few years, while strengthening spending and investments in local projects.
#General Authority for Statistics Fast estimates are published for the real GDP growth rates for the fourth quarter 2024 AD.
– The General Authority for Statistics (@stats_saudi) January 30, 2025
