Saudi economy grows by 8.8 pct year-on-year in third quarter

RIYADH, Saudi Arabia (AA) – Saudi Arabia said Sunday its economy grew by 8.8 percent on an annual basis in the third quarter of 2022, up from 7 percent in the corresponding period last year, amid an improvement in oil activities.

In a statement, the Saudi General Authority for Statistics (GASTAT) said growth on a quarterly basis in the oil-rich kingdom rose by 2.1 percent in the last third quarter.

Oil activities grew in the third quarter by 14.2 percent on an annual basis, amid a rise in oil prices and an increase in demand for crude and derivatives from the main markets, the statement said.

Non-oil activities, however, grew during the same period by 6 percent, while government activities rose by 2.5 percent, at a time when the kingdom is intensifying efforts to diversify the economy away from fossil fuels.

Last week, Saudi Arabia said it expects its domestic economy would grow during the current year by 8.5 percent, while the International Monetary Fund forecasts the kingdom’s economic growth at 7.6 percent.

Saudi Arabia is the second largest producer of crude oil in the world after the US, with an average daily production of 11 million barrels, and is the largest global exporter with a daily average of 7.5 million barrels.

The Saudi gross domestic product (GDP) at current prices during the third quarter amounted to 1.036 trillion riyals ($276.2 billion), of which crude oil and natural gas revenues accounted for 35.2 percent.

* Ikram Imane Kouachi contributed to this report