Second release slightly revises down GDP contraction in Q2

GDP reading: A second statistical release revealed GDP slid 0.3% year on year in Q2, an improvement from the 0.4% shrinkage recorded in the first release, as well as the 1.7% contraction logged in Q1. The result was the best in a year. On a seasonally adjusted quarter-on-quarter basis, economic growth was unchanged at 1.4% in Q2, matching the first release and marking the joint-fastest expansion since Q4 2022.

Drivers: Looking at a breakdown by expenditure, the annual improvement reflected household spending growth accelerating to 2.8% in Q2 from a 2.0% expansion in Q1. Similarly, public spending sped up to a 10.9% expansion in Q2 (Q1: +6.3% yoy). Conversely, fixed investment growth waned to 3.2% in Q2 from 4.7% in the prior quarter. Meanwhile, exports of goods and services slid at a more moderate pace of 5.8% in Q2, which marked the best reading in a year (Q1: -6.6% yoy). Conversely, imports of goods and services deteriorated, contracting 0.9% in Q2 (Q1: +1.8% yoy).

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Saudi Arabian government consumption projections for the next ten years from a panel of 8 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable government consumption forecast available for Saudi Arabian government consumption.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Saudi Arabian government consumption projections.

Want to get access to the full dataset of Saudi Arabian government consumption forecasts? Send an email to info@focus-economics.com.