Saudi Arabia’s economic growth slowed to just 1.1% year-on-year for Q2, driven by a sharp oil-sector contraction. Q2’s weak growth brings to an end a stellar run of eight consecutive quarters of 3%+ real-terms economic growth and underlines the extent to which the economy remains dominated by oil-sector dynamics.
This year’s more muted oil prices, despite heavy Opec+ production cuts, have led to a series of growth downgrades from the IMF, which last week cut its 2023 forecast to 1.9% from 2.1% in June. The economy grew by an 11-year high 8.7% last year (MEES, 3 February). (CONTINUED - 549 WORDS)
