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Saudi Arabia's GDP grew 3.9% in the second quarter

According to estimates by the government released on Monday, Saudi Arabia's GDP (gross domestic product) will grow 3.9% in 2025 due to non-oil sector growth.

According to the Saudi General Authority for Statistics, non-oil activities grew 4.6% in comparison to the same period last year. The fastest growing sectors were electricity, water, and gas, followed by business, finance, and insurance.

Oil grew by 3.8%, while government activities grew 0.6%.

The oil activities grew the most compared to first quarter by 5.6%.

On Sunday, the Saudi-led OPEC+ decided to increase oil production further as the kingdom tries to regain its market share.

In an online meeting held on Sunday, the eight members of OPEC+ decided to increase production by 137,000 barrels a day from October. This is a much smaller increase than the monthly increases for September and August of approximately 555,000 bpd and 411,000 bpd between July and June.

Oil prices have fallen by around 15% this year due to the increase in production. The prices haven't fallen, but are still trading at $65 per barrel. This is due to the sanctions imposed by the West on Russia and Iran.

Saudi Arabia's economy is expected to be affected by the lower oil prices. The International Monetary Fund says Riyadh requires a price of over $90 per barrel to balance its accounts.

Saudi Arabia has embarked on a costly transformation program called Vision 2030, which aims to wean its economy off of oil dependence. It is investing billions in sectors such as tourism, entertainment, and sports.

Saudi Arabia's fiscal deficit in 2025 is expected to be around 101 billion riyals (about 27 billion dollars). Reporting by Pesha Magd; editing by Andrew Cawthorne

(source: Reuters)