The Saudi economy grew by 1.1% year-on-year in the second quarter of 2022, significantly lower than the previous quarter's growth, as declining oil activities weighed on the Gulf state, flash estimates showed.
The growth was driven by a 5.5% rise in non-oil economic activities and a 2.7% increase in government services, which offset the 4.2% drop in oil activities, according to the General Authority for Statistics.
However, on a seasonally adjusted basis, Saudi's real GDP fell 0.1% compared to the first quarter. Officials attributed the decline to a 1.4% drop in oil activities despite expansion in non-oil and government services activities.
The non-oil Purchasing Managers' Index stood at 59.6 in June, suggesting accelerated growth in construction and tourism. Saudi Arabia's economy grew 3.8% year-on-year in the first quarter.
The IMF lowered Saudi's 2022 and 2024 growth forecasts, though it acknowledged robust growth in the kingdom's non-oil economy. The IMF also suggested lower oil revenue this year would return Saudi's fiscal surplus to a deficit. Saudi posted a budget surplus of $27.7 billion in 2022, its first in nearly a decade.
