The Saudi economy will grow by 1.8% in Q2 but the non-oil sector will lose steam

Dubai (Reuters) – Saudi Arabia’s economy grew by 1.8% in the second quarter, according to official GDP estimates, but the world’s largest non-oil exporter lost steam.

File Photo Overview in Riyadh, Saudi Arabia June 21, 2020. REUTERS / Ahmed Yosri / File Photo / File Photo

The figures, released by the General Statistics Authority on Monday, forecast 1.5% overall growth in the second quarter, but non-oil growth from 10.1% to 8.4%.

According to the quarter, the Saudi economy grew by 0.6% compared to the first three months of the year, and the oil sector is booming.

Last year, Saudi Arabia was hit hard by the COVID-19 epidemic and the shock of the twin oil prices. However, the economy has recovered this year by easing restrictions on vaccines and increasing the cost of vaccines and vaccines.

The gross domestic product (GDP), which includes wholesale and retail, restaurants and hotels, grew by 16.9 percent in the same quarter last year, although slightly lower than in the first three months of this year.

Economists say that the demand for resilience, which will increase demand for recovery, is expected to lose some steam.

The 2Q2021 pre-GDP data released in August show a modest pace of non-oil GDP growth. Monica Malik, chief economist at Abadabi Commercial Bank, said in a statement last week that since the reopening of the economy, growth, activity and demand are expected to decline.

Saudi Arabia’s major sovereign investor’s domestic investment program is expected to be a major driver of future economic growth.

London-based capital economics says the recovery of the non-oil sector has slowed down in recent months, in contrast to the consolidated oil sector.

“By agreeing to OPEC + … to further increase oil production, this will support the growth of mechanically strong domestic production and will not only facilitate operations in the non-oil sectors,” he said in a note last week.

Reported by David Barbushiya; Edited by Tom Hog

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