Saudi Arabia’s private-sector recovery from the impact of the coronavirus faltered in the second quarter, even as rising oil production helped boost the overall size of the economy.
The private sector accounted for 48 percent of economic output, compared to nearly 52 percent in the previous three-month period, a statement from the General Authority for Statistics showed on Monday.
Business activity in Saudi Arabia’s non-oil private sector had slowed last month, according to IHS Markit’s Purchasing Managers’ Index.
Gross domestic product grew 0.6 percent during the second quarter compared to the previous three-month period, lower than an earlier government projection of 1.1 percent, the statement showed. The non-oil economy contracted 0.5 percent on a quarterly basis, a downward revision from a previous estimate of 1.3 percent.
On an annual basis, the kingdom’s non-oil economy grew 8.4 percent while the oil economy contracted about 7 percent. Output expanded 1.8 percent year-on-year, the fastest pace since late 2018, driven mainly by a boost in the oil sector.
“The GDP data reflects the economy is in its recovery path,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “The yearly growth highlights the rebound in activity from the depth of the Covid-19 crisis during the second quarter of 2020, with the quarterly data reflecting some normalisation after the initial recovery.”
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