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Real GDP in the Kingdom of Saudi Arabia recorded positive growth for the first time since the start of the Covid-19 pandemic, 1.5% in the second quarter of 2021, compared to the same period in 2020, according to reports. rapid estimates released by the General Statistics Authority today Monday.
According to the authority, this positive growth is due to the increase achieved by non-oil activities of 10.1%, in addition to the increase in government activities of 0.7%, while oil activities saw a decline. by 7%.
The authority said seasonally adjusted real GDP grew 1.1% in the second quarter of 2021, compared to the first quarter of this year.
He attributes the increase to the positive growth seen in petroleum activities of 2.5%, in addition to an increase in non-oil activities of 1.3%, while government activities saw a decline of 2.6%.
Flash estimates released by the General Statistics Authority on the growth of the Saudi economy
The International Monetary Fund forecast in its World Economic Outlook, released last July, that the Saudi economy would grow by 2.4% this year, and 4.8% in 2022, compared to its expectations in the World Economic Outlook from last April, with growth of 2.9% in 2021, and 4% in 2022.
A quarterly survey conducted by Reuters, also in July, showed that the six Gulf Cooperation Council economies are expected to recover and grow between 2% and 3% this year.
The survey predicted that the region’s two largest economies, Saudi Arabia and the United Arab Emirates, would grow by more than 4% next year.
These expectations come after sharp declines last year following the collapse in oil prices and the impact of the Covid-19 pandemic, when analysts expected Saudi Arabia, the United Arab Emirates and Kuwait benefit from the OPEC + agreement to restart oil production.
Saeed Al-Sheikh, an economist, said these positive results this quarter are a result of the actions taken by the Kingdom during and after the Corona crisis, and this recovery which started gradually from the second quarter of last year. , and continued to improve until the first quarter of this year, until it reached 1.5% growth in the second quarter.
He explained that achieving non-oil sector growth of over 10% is undoubtedly a positive thing and came as a result of special decisions to support the private sector, both through the general budget, which allocated 116 billion riyals to deal with the Corona pandemic, as well as financial support provided by the Saudi Central Bank.
In his speech to Al-Arabiya, he added that this Central Bank support of approximately 130 billion riyals covers several channels, in particular with regard to the deferral of contributions of small and medium-sized enterprises and the extension of the deferral until ‘in the first quarter of this year, as well as guarantees provided through the sponsorship program, and support for the financing of small and medium-sized projects.
He pointed out that the Central Bank also stepped in and injected more than 60 billion riyals into the banking system, and these issues paved the way for this recovery, in addition to the decisive confrontation with the Corona pandemic, which has reduced periods of economic closure.
He said that there is a gradual improvement in the oil sector after the approval of OPEC and its partners to increase production, and therefore we note that in the last months of this quarter, oil production has increased, with the improvement in prices despite the fluctuations that we see in prices.
Saudi Arabia’s economy is expected to grow between 2.5 and 3 percent this year, and there is consensus on non-oil sector growth of over 4 percent.
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