Saudi Arabia: GDP accelerates in Q1 as oil activity rebounds
July 2, 2015
GDP expanded 2.4% in Q1 over the same quarter last year, which represented an acceleration over the 1.6% increase tallied in Q4 (previously reported: +2.0% year-on-year). The print overshot the 2.2% increase that FocusEconomics panelists had expected and marked the fastest growth in three quarters. The acceleration observed in Q1 mainly reflected a rebound in the oil-related sector (Q4: -0.7% yoy; Q1: +1.8% yoy), while non-oil industries recorded a mild slowdown (Q4: +3.4% yoy; Q1: +3.3% yoy).
Growth in the agriculture sector slowed to 1.2% in Q1 (Q4: +1.6% yoy), while dynamics in the manufacturing sector moderated to a 3.3% expansion (Q4: +7.1% yoy). Activity in mining and quarrying, which include the all-important crude and oil sectors, rose 1.6% in Q1, marking a rebound over the 1.4% decline tallied in Q4. In the services sector, growth in financial services slowed in Q1, while dynamics in domestic trade and the construction sector accelerated.