The Saudi economy escapes recession in the first quarter

Saudi commuters descend a main street In the Riyadh capital, October 18, 2016

The Saudi economy has pulled out of the recession in the first quarter of 2018, thanks to rising oil prices and a surge in the non-crude sector, have declared the authorities Sunday

. The kingdom's economy grew by 1.15% in the first three months of the year compared to the same period last year when it had decreased by 0.84%, according to the General Authority of Statistics

. the non-oil sphere and an increase of 0.62% in the oil sector, which contracted by nearly 2% in the first quarter of 2017.

Oil prices have risen steadily since the beginning of 2016, when OPEC and non-OPEC producers have to process to cut production.

Falling oil revenues – which account for 70% of government revenue – plunged the OPEC economy into negative territory last year for the first time since 2009, a year after the global financial crisis.

Crown Prince Mohammed bin Salman pushes a package of major economic and social reforms in the kingdom.

As part of its Vision 2030 plan, the heir to the throne plans to reduce Riyadh's oil dependence, boost tourism, and invest heavily in underdevelopment.

Crude prices remained high even after oil producers announced last week that they plan to increase production from July.

US President Donald Trump said Saturday that King Salman had accepted his request. Accelerate oil production up to two million barrels a day.

Riyadh has posted a budget deficit over the last four years, borrowing from domestic and international markets. At the beginning of 1965, the value added tax was 5%.

Since 2014, the Saudi budget deficits reach 260 billion dollars and the government plans 2018