Saudi Economy Grows 11.8% in Q2 of 2022

The real GDP of Saudi Arabia increased by 11.8% in the second quarter of 2022, compared to the same quarter of 2021.

The authority said in a report that this positive growth is due to the significant increase in oil activities by 23.1%, in addition to the increase in non-oil activities by 5.4%, and government services activities by 2.2%.

The seasonally adjusted real GDP increased by 1.8% in the second quarter of 2022, compared to the first quarter of this year. The rise is due to the positive growth witnessed by oil activities by 4.8%, in addition to an increase in government services activities by 0.2%, while Non-oil activities decreased by 0.4%.

Saudi Arabia's real GDP grew by 9.9% in the first quarter of 2022, on an annual basis. On a quarterly basis, seasonally adjusted GDP grew by 2.6%.

The authority attributed the economic growth, at that time, mainly to the significant rise in oil activities, which amounted to 20.3% on an annual basis, and 2.9% on a quarterly basis. The growth in non-oil activities amounted to 3.7% on an annual basis and 0.9% on a quarterly basis.

Mohammed Makni, Professor of Finance and Investment at Al-Imam University in Saudi Arabia, said that the figures issued about the growth of the Saudi economy in the second quarter by 11.8% are positive and complement international reports.

He added in an interview with "Al-Arabiya", that although growth was largely supported by oil activities, there is a great focus on non-oil activities, and there is an attempt to stimulate these activities as the growth rate indicates a rise in activity and production.

He pointed out that the real GDP growth rate is the highest in 11 years.

He said that the output is expected to continue improving during the second and third quarters, and that we will see an increase in non-oil activities that support the Kingdom's goal of penetrating the trillion dollars in gross domestic product for the first time, noting that one of the goals of the "Kingdom Vision 2030" is that the output will be by 2030 at about 6.4 trillion riyals so that the Kingdom's economy becomes among the 15 largest economies in the world.

It is noteworthy that the International Monetary Fund, in its latest estimates, expected the growth of the Saudi economy by 7.6% this year, and 3.7% during the year 2023.

The fund’s expectations for the growth of the Saudi economy in 2023 were higher than its previous forecast last April at 3.6%, while it kept its expectations for 2022 unchanged.