Saudi Arabia: GDP growth loses notable steam in Q2
According to a second release, GDP growth slowed markedly to 1.2% year on year in the second quarter (preliminary reading: +1.1% yoy), from 3.8% in the first quarter. Q2’s reading marked the worst reading since Q1 2021.
The downturn was broad-based, with growth in private consumption, public spending, fixed investment and exports all weakening. Household spending growth moderated to 3.3% year-on-year in Q2 from a 3.9% expansion in Q1. Public consumption growth was the slowest since Q4 2020, expanding 1.0% (Q1: +16.2% yoy). Fixed investment growth fell to an over two-year low of 2.4% in the second quarter (Q1: +17.6% yoy).
On the external front, exports of goods and services growth moderated to 0.3% in Q2 (Q1: +2.0% yoy). In addition, imports of goods and services growth moderated to 4.9% in Q2 (Q1: +11.2% yoy).
On a seasonally adjusted quarter-on-quarter basis, GDP contracted 0.2% in Q2, from the previous quarter’s 1.4% decrease.