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Saudi economy grows 1.3% in 2024 after Q4 surge

Saudi Arabia economy Reuters/Ahmed Yosri
Diners at a restaurant in Riyadh. Hotels and restaurants contributed 10% to Saudi Arabia's GDP in 2024
  • Non-oil growth rose
  • Inflation fell to 1.7%
  • 4.6% growth expected this year

Saudi Arabia’s economy grew by 1.3 percent in 2024 driven by a surge in the fourth quarter and growth in non-oil activities.

Real GDP growth increased to 4.4 percent year on year in the last three months of 2024, having remained around 1.6 percent in the first half of the year.

Growth in the non-oil sector was high throughout last year, rising from 3.4 percent in the first quarter to an average of 4.6 percent in the last nine months.

The latest estimates, released by the General Authority for Statistics on Thursday, are roughly in line with predictions. Saudi Arabia’s real GDP contracted by 0.8 percent in 2023.

Oil activities remain the biggest single contributor to GDP, accounting for around 22 percent of the economy, according to figures released for Q3 2024.

This was followed by government activities at 16 percent and wholesale and retail trade, restaurant and hotel activities at 10 percent.

2024 also recorded a decrease in inflation, dropping to 1.7 percent, compared to 2.3 percent in 2023.

Emirates NBD Research has projected a modest acceleration to average 2 percent in 2025, largely driven by rising housing prices and increased domestic demand.

The kingdom's government has said it expects 4.6 percent growth in 2025. Earlier this month, however, the International Monetary Fund reduced their estimates for growth down to 3.3 percent largely due to extended oil production cuts.