Saudi industrial production index slips 24% in April 2021

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Saudi Arabia’s Industrial Production Index (IPI) fell by 24% to 102.72 points in April 2021, compared to 135.24 points in April 2020, with 2010 used as the base year, data from the General Authority for Statistics (GASTAT) showed.

IPI measures relative change and reflects the progress of production volumes of materials and goods, which is converted from raw materials into finally produced consumables in the form of commodities, for the purpose of achieving a return.

The index decline was attributed to the fall in the mining and quarrying activity index by 32%, as the Kingdom cut oil production to 8.1 million barrels per day (bpd) in April 2021, from 12 million bpd in April 2020.

Meanwhile, the manufacturing industry index increased by 12% - its first rise since December 2019. 

The GASTAT defines manufacturing industries as industries whose activity involves the conversion of raw materials into finished products or intermediate products. Electricity, gas and water supply industries are known for electricity and gas delivery, as well as water supply, sewage, waste management and treatment activities. Extractive industries are involved in the process of extracting raw materials from the ground, and these industries rely on natural materials that cannot be replenished or compensated, such as oil and minerals.

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