Saudi Arabia’s economy grows 1.66 percent in Q1

The IMF forecasts overall economic growth at 1.9 percent this year. (File photo: Shutterstock)

Saudi Arabia’s economy grew 1.66 percent in the first quarter, in line with expectations of a modest pick up as oil production cuts weigh on the world’s top crude exporter.

The Saudi oil sector grew 1 percent in the first quarter, government data showed on Sunday.

The Organization of the Petroleum Exporting Countries (OPEC) and its Russia-led allies agreed in December to slash oil production by more than the market had expected.

On Sunday, Saudi Energy Minister Khalid al-Falih said the cuts would most likely be extended by nine months.

This is expected to weigh on oil sector growth this year, while non-oil sector growth is likely to pick up slightly, on the back of a boost in government spending.

Non-oil sector growth in the first quarter was 2.13 percent, largely in line with the same period last year, but up from a 1.8 percent growth in last year’s fourth quarter.

Non-oil activity picked up particularly in the private sector, which saw a growth of 2.3 percent.

The IMF said last month real non-oil growth is expected to strengthen to 2.9 percent in 2019, boosting overall economic growth to 1.9 percent, higher than its earlier projection of 1.8 percent.

Last Update: Sunday, 30 June 2019 KSA 11:26 - GMT 08:26

Send to a friend

Saudi Arabia’s economy grows 1.66 percent in Q1
Friend's name:
Friend's Email:
Sender's name:
Sender's Email:
Captcha Code
How are we doing?

How are we doing?

Name Name *
Email Email *
Country Country
Message Message *
Maximum 550 words allowed