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Economic Growth in Saudi Arabia
Saudi Arabia's GDP growth over the last decade partly tracked OPEC decisions on oil output, given the importance of the oil sector to GDP. The COVID-19 pandemic caused a sharp contraction, but recovery was underway by 2022, driven by the lifting of pandemic restrictions and successful economic diversification efforts boosting the non-oil economy. However, tough OPEC oil output cuts caused the economy to return to contraction in 2023 and to remain subdued in 2024, despite a buoyant non-oil sector.
In the year 2024, the economic growth in Saudi Arabia was 1.81%, compared to 4.02% in 2014 and 0.54% in 2023. It averaged 3.05% over the last decade. For more GDP information, visit our dedicated page.
Saudi Arabia GDP Chart
Note: This chart displays Economic Growth (GDP, annual variation in %) for Saudi Arabia from 2014 to 2025.
Source: Macrobond.
Saudi Arabia GDP Data
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Economic Growth (GDP, ann. var. %) | 6.5 | 12.0 | 0.5 | 2.6 | 4.6 |
| GDP (USD bn) | 982 | 1,237 | 1,218 | 1,253 | 1,273 |
| GDP (SAR bn) | 3,685 | 4,647 | 4,570 | 4,703 | 4,776 |
| Economic Growth (Nominal GDP, ann. var. %) | 28.0 | 26.1 | -1.7 | 2.9 | 1.5 |
| Economic Growth (GDP non-Oil, ann. var. %) | 8.9 | 10.7 | 4.7 | 5.5 | 4.2 |
| Economic Growth (GDP Oil, ann. var. %) | 2.0 | 14.5 | -9.0 | -4.4 | 5.7 |
Economy slips into contraction in the second quarter of 2026
The Middle East war dampens growth: Saudi Arabia's GDP contracted 4.8% on a year-on-year basis in Q2, following a 3.0% expansion in the previous quarter. Q2's reading was the weakest in six years. This downturn was primarily driven by a steep slump in the oil sector amid the conflict in Iran and the closure of the Strait of Hormuz, alongside a marked deceleration in non-oil activities. On a seasonally adjusted quarter-on-quarter basis, the economy contracted 4.9% in Q2, following a 1.2% contraction in the previous quarter.
Oil sector drives economic deceleration: Compared with the previous period's data, readings in Q2 softened for oil GDP (-24.7% on a year-on-year basis vs +2.9% in Q1), private non-oil GDP (+0.6% vs +2.9% in Q1) and government non-oil GDP (+0.9% vs +1.4% in Q1).
Economic recovery remains tied to regional stability: Our panelists have slashed their GDP growth forecasts since the conflict in the Middle East started. GDP growth is now projected to hit a three-year low in 2026. The oil sector will face the steepest decline, with our Consensus falling by more than 14 percentage points since the war began, as all panelists now project a contraction—with some even forecasting double-digit declines. While non-oil activity is also expected to decelerate noticeably, our Consensus is that it will manage to remain in expansion territory. The economic outlook remains heavily reliant on the trajectory of the regional conflict and the reopening of key export corridors.
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Saudi Arabian GDP projections for the next ten years from a panel of 31 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 GDP forecast available for Saudi Arabian GDP.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Saudi Arabian GDP projections.
Want to get access to the full dataset of Saudi Arabian GDP forecasts? Send an email to info@focus-economics.com.
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