Saudi Arabia's GDP contracts 3.3% in Q1
Wednesday, 05 12 2021, Category: Economy, Country: Saudi Arabia
Saudi Arabia's economy shrank 3.3% in the first quarter from a year earlier, hit by oil output cuts, but the non-oil economy expanded 3.3%, recovering from the pandemic, according to flash government estimates on Monday.
The non-oil sector grew for the first time since the first quarter of 2020, the General Authority for Statistics in Saudi Arabia said in a statement. Government services also showed growth of 0.3% in the first quarter.
Saudi Arabia's economy, the largest in the Arab world, is expected to grow 2.1% in 2021 after shrinking 4.1% last year amid the twin shocks of the coronavirus pandemic and lower oil prices, the IMF said in a recent report. read more
The latest data showed overall GDP in the first quarter was hurt by a 12% decline in ongoing crude oil production cuts agreed by the Organization of the Petroleum Exporting Countries (OPEC), Russia and their allies, a group known as OPEC+ since May 2020.