Saudi Arabia’s economy grew 3.9% in Q1 of 2023

Saudi Arabia’s economy grew an annual 3.9 per cent in the opening three months of the year, according to preliminary data released by the General Authority for Statistics. That compares with 5.5 per cent in the previous quarter.

Economic expansion was driven by a 5.8 per cent increase in non-oil activities, the engine of job creation, the data showed Sunday.

Oil activities’ growth was 1.3 per cent, compared with 6.1 per cent the previous quarter.

The International Monetary Fund expects the Saudi economy to grow 3.1 per cent this year, a significant slowdown from the 8.7 per cent it recorded in 2022.

The IMF has said that Saudi Arabia won’t be able to balance its budget this year if average oil prices are below $80 a barrel.

Crown Prince Mohammed bin Salman, is halfway through his multi-trillion-dollar vision to transform and diversify the economy of the world’s largest crude exporter, under a plan known as Vision 2030.

In addition to jump-starting non-oil sectors like tourism, the country wants to boost the private sector’s share of the economy to 65 per cent from the low 40s.

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