The economy of Saudi Arabia was hindered in the second quarter as the oil production cuts and a decrease in prices drove the country from being among the fastest-growing Group of 20 countries to one of the slowest countries.
According to the initial data released by the General Authority of Statistics, gross domestic product developed 1.1% annually, compared with 3.8% in the last year and 11% a year earlier.
Moreover, the non oil- sector – where most Saudis are engaged, and the government wants to expand to diversify the economy- extended by 5.5%. At the same time, Oil GDP decreased by 4.2%.
However, earlier this month, the kingdom got the greatest downgrade among the major economies from the International Monetary Fund. As the fund cut the kingdom’s growth outlook for 2023 to 1.9%, a downward modification of 1.2% points from the Washington- based lender’s earlier estimate.
Besides, the economic growth nearly reached 9% the previous year, which was the fastest in the G-20 and was driven by the record cause output of around 10.5 million barrels a day and prices averaging about $100 a barrel as the invasion of Russia in Ukraine agitated energy markets.
Moreover, this year, steep production cuts intended to shore up crude prices have moved Saudi oil output to the lowest in years. Brent is trading around $84.60a barrel, down 1.6% after the end of 2022.
Furthermore, the $1 trillion economy’s receipts from oil sales abroad declined by more than a third in May to the lowest after September 2021.
