https://arab.news/w65cx
RIYADH: Saudi Arabia’s real gross domestic product expanded by 4.4 percent in the fourth quarter of 2024 compared to the same period in 2023, marking its highest growth in two years, official data showed.
According to flash estimates from the General Authority for Statistics, the Kingdom’s non-oil activities grew by 4.6 percent year on year in the fourth quarter, reflecting ongoing efforts to diversify the economy.
The report also noted that oil activities rose by 3.4 percent in the fourth quarter compared to the same period in 2023, while government activities expanded by 2.2 percent.
Strengthening the non-oil sector remains a key goal under Saudi Arabia’s Vision 2030 as the Kingdom continues efforts to reduce its dependence on oil revenues and drive sustainable economic growth.
“The results also showed that seasonally adjusted real GDP increased by 0.3 percent in the fourth quarter of 2024 compared to the third quarter of the same year,” GASTAT stated.
Compared to the third quarter, non-oil activities in the Kingdom grew by 1.3 percent, while government activities rose by 0.3 percent. However, oil activities witnessed a quarterly decline of 1.5 percent.
For the full year 2024, Saudi Arabia’s GDP expanded by 1.3 percent compared to 2023. This increase was primarily driven by a 4.3 percent rise in non-oil activities, underscoring the Kingdom’s focus on economic diversification.
Government activities recorded a 2.6 percent annual increase, while oil activities contracted by 4.5 percent due to OPEC+ output cuts, which have impacted production levels.
Earlier this month, the International Monetary Fund projected that Saudi Arabia’s economy will grow by 3.3 percent in 2025 and 4.1 percent in 2026. These projections reflect shifts in the global economic landscape, with oil production adjustments playing a key role in influencing near-term growth expectations.
A December report from Mastercard Economics also highlighted the robust expansion of Saudi Arabia’s non-oil sector. The analysis forecast that the Kingdom’s GDP will grow by 3.7 percent year on year in 2025, largely driven by increased non-oil activities.
The Mastercard report added that economic diversification efforts will remain a priority in 2025, with the government leveraging its strong fiscal position to finance infrastructure development and new investment opportunities.