Despite Slowdown in Oil GDP, Saudi Private Sector Records 11% Growth in Q2

Latest figures from the Saudi General Authority for Statistics (Gastat) published Monday show 11% growth in the second quarter of 2021 for Saudi Arabia’s private sector compared to the same period last year, pushing GDP up by 1.8 percent, Eye of Riyadh reports.

Gastat reported last month a GDP rise of 1.5 percent.

Official data showed that despite a slowdown in its oil sector, Saudi Arabia revised its GDP figures for Q2 of this year based on the strong growth in private sector and non-oil activities after the national economic growth exceeded Saudi government estimates.

The highest growth rate of 17.1 percent was recorded within transactions in community, social, and personal services with the economic activities in the Kingdom showing moderate recovery from the pandemic.

Retail and hospitality sectors (restaurants and hotel industry) have seen 16.9 percent growth followed by the manufacturing sector with recorded 15.3% growth.

With the Kingdom curtailing production under its agreement with OPEC+, the oil sector contracted 6.9 percent while the non-oil sector showed 8.4 percent growth, while the government sector grew by 2.3%.

The real GDP of the oil sector, with seasonal adjustments, during the Q2 achieved an increase of 2.4%.

Gastat latest data pictures the evident rebound after five consecutive quarters of year-on-year declines, including a 7% drop in Q2 of 2020 when lockdowns took effect globally to slow the spread of the coronavirus pandemic.

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