Saudi Arabia Q2 GDP 2022

A quick assessment showed that the economy grew 11.8% year-on-year in the second quarter – the fastest pace since 2011 – thus confirming that the economy continues to grow at a breakneck pace after growing 9.9% in the first quarter.

The improvement in results was driven by stronger growth in the oil sector, which rose 23.1% in the second quarter from 20.3% in the first quarter. Growth in the non-oil private sector increased to 5.4% in the second quarter from 4.5% in the first quarter, while growth in non-oil government activities slowed to 2.2% in the second quarter (Q1: 2.4%).

The acceleration in the second quarter was partly due to the base effect, with seasonally adjusted quarterly growth slowing to 1.8% in the second quarter from 2.6% in the first quarter. The non-oil sector has delayed consistent growth. However, the oil sector accelerated qoq due to higher oil production. Looking ahead, the oil sector is set for further development. In terms of overall GDP, sequential growth is likely to remain robust in the third quarter, although year-on-year growth will be held back by a tighter base effect.

FocusEconomics experts predict GDP growth of 7.7% in 2022, which is 0.3 percentage points higher than last month’s estimate. In 2023, experts expect the economy to grow by 3.6%.