The Saudi economy grows 3.8% in the first quarter, supported by non-oil activities

Saudi Arabia’s General Authority for Statistics said on Thursday that the country’s economy grew by 3.8 percent year-on-year in the first quarter of 2023, which is largely in line with forecasts issued last month.
The authority added that non-oil economic activities grew by 5.4 percent, while oil activities increased by 1.4 percent and government service activities by 4.9 percent.
The authority estimated that the Saudi economy would grow by 3.9 percent in the first quarter when it issued preliminary estimates in May.
The Saudi economy grew by 8.7 percent last year, as high oil prices boosted revenues and led the kingdom to record its first budget surplus in nearly a decade.
But oil prices remain subdued this year, with the demand outlook uncertain despite a move by the world’s largest oil exporter to announce voluntary production cuts, most recently on Sunday.
The International Monetary Fund said yesterday, Wednesday, that it expects growth in Saudi Arabia to slow to 2.1 percent in 2023, less than its forecast in May, due to the oil production cuts announced by the OPEC + group in April.
The IMF added that the April oil production cuts will lead to a decline in overall growth to 2.1 percent, but the growth of the non-oil sector is expected to remain strong.
Crude oil and natural gas contributed 32.7 percent to Saudi Arabia’s gross domestic product last year, and oil refining operations accounted for an additional 6 percent.