Saudi Arabia's economy expanded by 3.8% in Q1 due to an increase in non-oil activities

Riyadh: In the first quarter of 2023, Saudi Arabia's real gross domestic product increased by 3.8 percent year over year, primarily due to growth in non-oil activities, according to a report released by the General Authority for Statistics.  

According to the GASTAT report, non-oil activities in the Kingdom increased by 5.4 percent in the first three months of 2023 compared to the same period in 2012. When compared to the final quarter of 2022, non-oil activity growth was 1%.   

In order to achieve the objectives set forth in Vision 2030, the Kingdom's economic diversification efforts centre on strengthening the non-oil private sector. 

Also Read: New York City the worst air quality in the world

The real GDP of the Kingdom fell by 1.4 percent in the first quarter of 2023 compared to the final quarter of the previous year, according to the GASTAT report.  


According to the report, oil activity increased 1.4% year over year but decreased by 4.7% quarter over quarter.  

The first quarter saw a 4.9 percent increase in government services activities compared to the same period last year.  

According to the GASTAT report, the majority of economic activities in the Kingdom experienced positive annual growth in the first quarter of 2023. This includes activities related to community, social, and personal services, which experienced the highest growth rate of 12.9% year over year.  

Transport, storage, and communication activities increased by 9.3 percent annually to come next.  

Also Read: Pentagon has condemned new laws that restrict LGBTQ activism in several states

The report also noted a 7.5 percent increase in restaurant, hotel, and wholesale and retail trade in Saudi Arabia.  


The International Monetary Fund's managing director, Kristalina Georgieva, stated earlier in January that Saudi Arabia is a global economic ray of hope at a time when many nations are experiencing economic difficulties.  

The non-oil sector of Saudi Arabia is expected to grow at an average rate of 5% in 2023, according to an IMF mission there in May.  

The Washington-based lender also praised the Kingdom's ongoing structural reforms in line with Vision 2030.  

Also Read: Israeli forces launch a rare raid into the Palestinian city of Ramallah, which leads to clashes

According to the Riyadh Bank's PMI report, Saudi Arabia's Purchasing Managers' Index for May was 58.5, indicating a significant expansion of the non-oil private sector.  

- Sponsored Advert -

Most Popular

- Sponsored Advert -
Join NewsTrack Whatsapp group