Saudi Arabia’s economy returned to growth in 2024, flipping from the previous year’s 1.7% contraction to 1.3% growth. This was driven by continued strong non-oil sector growth of year-on-year, which was broadly flat at 4.3%, while ongoing Opec+ cuts resulted in another year of contraction of the oil sector, which shrank by 4.5%.
The non-oil growth was in line with government expectations of 4-5% for the year (MEES, 10 May 2024). Saudi Arabia’s 2025 budget document states that for 2025, it expects “real GDP will grow by 4.6%, driven by an increase in non-oil activities.” The IMF is more conservative, but still projects strong 3.3% growth this year. (CONTINUED - 100 WORDS)