Private Consumption in Saudi Arabia
The Saudi Arabian economy recorded an average growth rate of 4.8% in private consumption in the decade to 2024, same level as the % average for . In 2024, the growth of private consumption was2.7%. For more information on private consumption, visit our dedicated page.
Saudi Arabia Private consumption Chart
Note: This chart displays Private Consumption (annual variation in %) for Saudi Arabia from 2014 to 2024.
Source: Macrobond.
Saudi Arabia Private consumption Data
2020 | 2021 | 2022 | 2023 | 2024 | |
---|---|---|---|---|---|
Private Consumption (ann. var. %) | -4.9 | 6.3 | 5.8 | 7.6 | 2.7 |
GDP growth improves in the second quarter
GDP reading: According to a preliminary reading, GDP growth improved to 3.9% year on year in the second quarter from 3.4% in the first quarter. The reading was the second-highest since Q1 2023 and exceeded market expectations. On a seasonally adjusted quarter-on-quarter basis, economic growth picked up to 2.1% in Q2 from 1.1% in the previous period's, marking the fastest expansion since Q1 2024.
Drivers: In annual terms, the oil sector grew 3.8% (Q1: -0.5% yoy), the fastest pace since Q4 2022, reflecting OPEC+’s decision to hike Saudi Arabia’s output quota in every single month of Q2. Non-oil private-sector activities also grew strongly, expanding 4.7% (Q1: +4.9% yoy), boosted by the government’s continued diversification drive. That said, government spending growth slowed to 0.6% (Q1: +3.2% yoy), the weakest pace in two years, potentially dented by lower oil prices.
GDP outlook: Our panelists expect GDP growth to broadly trend upward through Q2 2026, reaching the highest level since Q4 2022. OPEC+ is set to have fully unwound Saudi Arabia’s “voluntary” oil production curbs by autumn 2026, having phased them in from late 2023. Thereafter, GDP growth should cool a bit and then settle near the 10-year pre-pandemic average of 3.9% as oil production expands less sharply. Rising global protectionism poses a risk by dampening external demand for oil.
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Saudi Arabian private consumption projections for the next ten years from a panel of 10 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable private consumption forecast available for Saudi Arabian private consumption.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Saudi Arabian private consumption projections.
Want to get access to the full dataset of Saudi Arabian private consumption forecasts? Send an email to info@focus-economics.com.
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