Saudi Arabia's oil sector activities fell by 8.5% year-on-year in the April-June period. Saudi Arabia’s economy contracted 0.4% year-on-year in the second quarter of 2024, official preliminary estimates showed on Wednesday, mainly hit by a plunge in the oil sector.
Oil sector contracts The Gulf state’s oil sector activities fell by 8.5% year-on-year in the April-June period, according to the General Authority for Statistics (GASTAT). The non-oil sector grew by 4.4% while government activities increased by 3.6% year-on-year in the quarter. However, the oil-rich Gulf state's seasonally adjusted real gross domestic product (GDP) grew by 1.4% in the second quarter, compared to the previous quarter. On a quarter-on-quarter basis, the oil sector grew by 1.3%, while non-oil and government activities rose by 1.4% and 3.2%, respectively. In March, Saudi Arabia extended its previously implemented cut of one million barrels per day (bpd) in line with the Organization of Petroleum Exporting Countries (OPEC) decision to remove close to two million bpd of supply from the market since the end of 2022. IMF projection Earlier this month, the International Monetary Fund (IMF) projected that Saudi’s real GDP would grow by 2.7% in 2024, down from an earlier projection of a 4% rise.
The Saudi economy shrank 0.9% year-on-year in 2023, hit by a 9.2% fall in oil activities, despite its non-oil sector growing by 4.6%.
Saudi budget Saudi Arabia's 2024 budget has projected revenues of $312.5 billion and expenditures of $333.5 billion, leaving a deficit of over $21 billion.
On a sector-wise basis, the budget allocated the highest amount of $71.7 billion for military spending, followed by $57.6 billion for general items, $57 billion for health and social development, and $52 billion for education.
Earlier this month, majority state-owned Saudi Aramco raised as much as $12.4 billion from its secondary share sale in Aramco. The proceeds from the share offering are set to finance the Gulf state’s economic diversification efforts in line with its Vision 2030.
