Saudi Arabia’s non-oil activities demonstrated a significant growth of 4.4 percent in 2023 compared to the previous year, official data showed.
Additionally, government activities in the Kingdom experienced a rise of 2.1 percent in 2023 compared to the preceding year, according to a report released by the General Authority for Statistics.
The report, however, noted that Saudi Arabia’s gross domestic product decreased by 0.8 percent in 2023, attributed to a decline in oil activities. This reduction aligned with the Kingdom’s decision to reduce its crude output, in accordance with the agreement of the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+.
According to GASTAT, oil activities witnessed a 9 percent decrease in 2023 compared to the previous year, 2022.
In efforts to sustain market stability, Saudi Arabia initially reduced oil output by 500,000 barrels per day in April 2023, a measure extended until the end of December 2024.
Additionally, the Kingdom committed to an extra oil output cut of 1 million bpd in July, which persisted until the conclusion of December 2023.
Crude petroleum and natural gas activities constituted the highest contribution to the Kingdom’s GDP in 2023, accounting for 25.4 percent, while government services contributed 15.7 percent.
On the other hand, Saudi Arabia’s GDP contracted by 4.3 percent in the fourth quarter of 2023 compared to the same period in 2022. Compared to the third quarter of 2022, the Kingdom’s GDP witnessed a decline of 0.6 percent.
Similarly, Saudi Arabia’s per capita GDP amounted to SR118,216 in 2023, marking an 8.5 percent decline compared to the previous year.
GASTAT further revealed that most economic activities in the country witnessed positive growth last year.
According to the report, social and personal services activities recorded the highest annual growth rate of 10.8 percent, followed by transportation, storage, and communications activities, which rose by 7.3 percent.
Meanwhile, wholesale and retail trade, restaurants, and hotel activities grew by 7 percent in 2023 compared to the previous year, while the financial, insurance, and business services sector rose by 6.8 percent.
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