Saudi Arabia’s gross domestic product contracted by 3.3 percent during the first quarter of this year on an annual basis.
And driven by the continuing negative consequences of the Corona pandemic and the decline in oil prices.
According to the estimates of the Saudi General Authority for Statistics (governmental) issued Monday, the GDP of the oil sector shrank by 12 percent, due to the commitment to reduce production within the “OPEC” agreement.
While the non-oil sector grew 3.3 percent for the first time since the start of the Corona pandemic in the first quarter of 2020.
Saudi Arabia is the largest exporter of oil in the world, the third largest producer in the world after the United States and Russia, and the largest producers of the “OPEC” organization.
Starting in May 2020, Saudi Arabia began to reduce its oil production.
And in compliance with the decision to reduce production by the “OPEC +” coalition by a total of 9.7 million barrels per day.
In 2020, Saudi Arabia’s GDP contracted by 4.1 percent, compared to 0.3 percent growth in 2019, under pressure from the Corona pandemic and the drop in oil prices.
And at the beginning of last month, the International Monetary Fund expected Saudi gross domestic product to grow by 2.1 percent this year and 4.8 percent in 2022.