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Saudi economy grows 1.15% in the first quarter on rising oil prices

Saudi economy grows 1.15% in the first quarter on rising oil prices

Saudi Arabia : The Saudi Arabian economy bounced back into growth mode in the first quarter of this year, according to National Accounts figures from the General Authority for Statistics.

Gross domestic product (GDP) saw a 1.2 percent rise in the three months to the end of March, compared with the same period last year. This improvement follows four consecutive quarters of falling GDP, or recession, the Authority said.

“This indicates a recovery in the Saudi economy following the slowdown in 2017. Moreover, it is evidence of the resilience of the Saudi economy and its ability to recover from both the reduction in oil prices and the structural reforms,” it added.

The recovery came as a result of the accelerated growth both in the oil and non-oil sectors. The oil sector grew by 0.6 percent in the first quarter of 2018, as global oil prices continued to recover from the declines that began four years ago. The comparable figure in 2017 was a decline of 4.3 percent in oil GDP.

The non-oil sector, which has been the focus of policymaker’s initiatives at stimulus and expansionary budgeting, grew by 1.6 percent in the first quarter of 2018 compared to 1.3 percent in 2017.

“The main drivers behind the recovery was growth in the non-oil manufacturing and mining sectors by 4.6 percent and 6.3 percent, respectively. Moreover, pursuant to Vision 2030, these sectors are expected to lead the Kingdom’s future economic growth,” the Authority said.