Saudi Arabia's Q3 GDP contracts by 4.5% YoY due to oil production cuts

Posted on November 3, 2023   |  

In Q3, Saudi Arabia's economy contracted by 4.5% due to reduced oil production caused by planned cuts.

The previous year was exceptional for the country's economy, driven by high oil prices. 

However, in Q3, oil-related activities dropped by 17.3%, negatively impacting the overall economy. 

Meanwhile, other non-oil sectors grew by 3.6%, and government activities expanded by 1.9%.

To support the global oil market, Saudi Arabia opted to continue its voluntary oil production cut of 1 million barrels per day until the year's end.

Forecasts predict that non-oil industries will experience around 6% growth in 2023. 

The government plans to increase spending in the upcoming years to stimulate local demand and bolster non-oil economic growth.