Economy records slowest increase since Q2 2024 in Q1

GDP reading: According to a preliminary estimate from the General Authority for Statistics, annual GDP growth slowed to 2.7% in the first quarter, down from 4.4% in the fourth quarter of last year and marking the softest growth since Q2 2024. The print came in below market expectations. Conversely, on a seasonally adjusted quarter-on-quarter basis, economic growth improved to 0.9% in Q1, following the previous quarter's 0.8% increase and marking the fastest expansion in a year. The statistical office also revised past GDP data, citing a methodological change aimed at aligning more with international data quality standards.

Drivers: As has been the case since early 2023, annual GDP growth was driven by government activities and the non-oil private sector—despite the latter slowing from the prior quarter—which likely continued to be boosted by the government’s diversification agenda. In contrast, the oil sector shrank.

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.