Saudi Arabia: GDP declines at a faster pace in Q4
GDP fell at a faster rate of 4.3% year on year in the fourth quarter (preliminary estimate: -3.7% yoy), below the 3.2% contraction logged in the third quarter and the worst reading since Q2 2020. On a seasonally adjusted quarter-on-quarter basis, GDP declined 0.6% in Q4, improving from the previous period’s 2.3% contraction.
Private consumption grew 4.8% in the fourth quarter, which was below the third quarter’s 6.1% expansion. Public consumption expanded 4.5% (Q3: +6.8% yoy). Fixed investment rose 2.8% in Q4, from the 5.3% contraction recorded in the prior quarter. Exports of goods and services in Q4 declined 10.7% (Q3: -18.4% yoy). Conversely, imports of goods and services rose 5.8% in Q4 (Q3: +14.4% yoy).
Analysts at the EIU commented:
“The Saudi economy is expected to post a rebound in 2024, driven by higher oil production and robust non-oil sector growth. The kingdom is flush with cash from energy sales and will continue to ride a wave of capital expenditure projects aimed at meeting the targets in its ambitious economic diversification strategy, Vision 2030.”