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The main reason for the drop was the 11.7 percent contraction in the oil sector
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Private sector and non-oil sector report positive growth
Saudi Arabia has reported a three percent drop in its Gross Domestic Product (GDP) in the first quarter of this fiscal as the oil sector reported sluggish growth due a weak oil output. The General Authority for Statistics said in a report on Monday that GDP fell by 3 percent in the first quarter compared to a year earlier.
The main reason for the drop was the 11.7 percent contraction in the oil sector. However, the non-oil sector recorded a positive growth rate of 2.9 percent while the private sector expanded by 4.4 percent.
A weak oil output had hurt Gulf economies even before the arrival of the pandemic a year ago as reduced hydrocarbon revenues made it more difficult for governments to balance their budgets and fund major infrastructure projects.
The new data reveals that Saudi GDP per capita stood at SR19, 895 in the first quarter, down by 0.43 percent from the same quarter of the previous year, but up 0.44 percent on the previous quarter.
Despite the contraction of the economy, international trade continued its strong recovery in the first quarter with imports of goods and services growing by 9.1 percent compared to 11.3 percent growth in the previous quarter. Exports increased by 1.9 percent compared to 3.6 percent growth in the previous quarter.
Private final consumption expenditure grew 6.6 percent compared to growth of 1.5 percent in the previous quarter.