Saudi Arabia's Q1 Economic Growth Rate at 9.6%... Highest in 11 Years Thanks to Oil Price Surge

Oil Sector GDP Soars 20.4%... Non-Oil Sector GDP Growth Rate Stays at 3.7%

[Photo by AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] Saudi Arabia's economic growth rate in the first quarter of this year reached its highest level in 11 years, thanks to rising oil prices, Bloomberg reported on the 1st (local time).

The Saudi General Authority for Statistics announced that the first quarter GDP increased by 9.6% compared to the same period last year. This is the highest growth rate since the third quarter of 2011, when it rose by 13.6%.

The oil sector GDP surged by 20.4%, driving economic growth in the first quarter of this year. In contrast, the non-oil sector GDP growth rate was only 3.7%. The non-oil sector GDP growth rate actually slowed compared to 4.7% in the fourth quarter of last year.

The International Monetary Fund (IMF) predicted in its world economic outlook report last month that Saudi Arabia's economic growth rate would reach 7.6% this year, with GDP hitting $1 trillion for the first time ever. At that time, the IMF lowered the global economic growth forecast by 0.8 percentage points to 3.6%, citing the Ukraine war and inflation, but expected Saudi Arabia, the United Arab Emirates (UAE), and Qatar to benefit from rising oil and gas prices.

Brent crude oil prices have risen 38% this year alone and 50% compared to a year ago.

With rising oil prices, Saudi Arabia is increasing its daily oil production. In March, Saudi Arabia produced an average of 10.3 million barrels of crude oil per day, the highest production since April 2020.

The Saudi government announced that a fiscal surplus is expected for the first time since 2013 this year.