Saudi Arabia’s economy grows 1.2% in Q2

DUBAI: Saudi Arabia’s economy grew 1.2% in the second quarter, year-on-year, government data showed on Thursday, with non-oil growth vastly outperforming overall growth, which decelerated sharply from last year on the back of a decrease in oil activities.

Oil sector activities declined by 4.3% in the second quarter from the same period a year ago, data from the General Authority for Statistics showed, but non-oil activities surged 6.1%, driven by domestic demand.

Earlier official estimates had indicated GDP growth of 1.1%in Q2.

IMF projects Saudi Arabia budget deficit at 1.2% of GDP in 2023

Saudi Arabia’s economy grew 8.7% last year, allowing it to record its first budget surplus in almost a decade.

But cuts to production this year and lower prices have hit oil revenues and will weigh on growth.