Saudi Arabia GDP Q4 2020

Saudi Arabia

Saudi Arabia: GDP contracts at slower pace in Q4

March 31, 2021

The economy contracted 3.9% on an annual basis in the fourth quarter, after declining 4.6% in the third quarter. The result marked the sixth consecutive quarter of falling output.

The softer fall in output was predominately driven by a weaker contraction in the non-oil sector economy, which posted a 0.8% decline in Q4 (Q3: -2.1% yoy). Meanwhile, the oil sector economy fell 8.5% in the fourth quarter, which was slightly stronger than the 8.2% drop recorded in the quarter prior.

Commenting on the outlook, analysts at EIU noted:

“The performance of the oil sector will remain weak in the first quarter of 2021, reflecting a sharp unilateral cut in oil production in February/March. However, this will be followed by a strengthening in oil GDP over the remainder of the year, as output restrictions are gradually tapered against a backdrop of higher global oil prices. Meanwhile, the non-oil economy will benefit from a significant rebound in international—and in particular Chinese—demand. The biggest threat to the economic recovery at the moment is a renewed rise in Covid-19 infections.”

FocusEconomics Consensus Forecast panelists see the economy expanding 2.6% in 2021, which is down 0.3 percentage points from last month’s forecast. For 2022, panelists project GDP to grow 3.5%.

Author:, Economist

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Saudi Arabia GDP Chart

Saudi Arabia GDP Q4  20 20

Note: Year-on-year changes of GDP in %.
Source: General Authority for Statistics and FocusEconomics Consensus Forecast.

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