Saudi Arabia’s real GDP grows by 3.9 percent in first quarter

Riyadh, Saudi Arabia — The real GDP of Saudi Arabia grew by 3.9 percent in the first quarter of 2023, compared to Q1 of 2022.

Flash estimates of GDP for Q1 of 2023, issued in a report by the General Authority for Statistics (GASTAT), showed a 5.8 percent increase in non-oil activities over Q1 of 2022, and a 1.3 percent increase in oil activities over Q1 of 2022, according to SPA.

Seasonally adjusted real GDP decreased by 1.3 percent in Q1 of 2023 compared to the Q4 of 2022.

Saudi Arabia’s economic growth is expected to accelerate by 3 percent in 2023 backed by a robust non-oil sector. 

According to a forecast by Riyad Capital, the output from this part of the economy will rise by 5 percent this year.

The growth will be driven by a sturdy fiscal policy geared towards increasing investment spending, according to the capital market company.

The oil sector is also expected to continue its growth trajectory estimated at 1.2 percent this year, noted the report.  

2022 saw highest GDP rise since 2011

In 2022, Saudi Arabia’s gross domestic product growth rate increased to 8.7 percent – the highest rise since 2011. The oil sector was one of the main drivers, contributing at least 4.8 percent to this growth.  

In the fourth quarter of 2022 alone the Kingdom’s economy recorded a growth of 5.4 percent annually.

Riyad Capital based its 2023 oil forecasts on the Kingdom’s stable oil production rate, with an average of 10.7 million barrels per day, after reaching 10.6 million barrels per day in 2022.  

As for oil prices, the report predicted a somewhat weaker performance in the first half of 2023 thanks to the current downturn in the global economy.