Saudi GDP falls 0.8% in 2023

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Saudi Arabia’s real gross domestic product (GDP) fell by 0.8% year-on-year (YoY) in 2023, data issued by the General Authority for Statistics (GASTAT) showed. 

Oil activities declined by 9% YoY, while non-oil activities grew by 4.4% annually. In addition, government services increased by 2.1% YoY.

GASTAT adopted the chain-linked methodology in the national accounts to calculate the real GDP. It issued the publications of Q4 2023 and 2023, adopting the new methodology instead of the previous one, which was based on utilizing the fixed base year.

The chain-linked methodology is a dynamic methodology used in measuring economic growth rates, specifically in estimating the real growth rates of national accounts. It depends on the weights and prices of the year preceding the year of measurement to provide a measurement within adjacent time periods. It accurately reflects the current economic conditions of any country that employs it.

The GDP retreated by 4.3% YoY in Q4 2023, while the seasonally adjusted GDP went down by 0.6% quarter-on-quarter (QoQ).

Based on the chain-linked methodology, the GDP dropped to SAR 891.38 billion in Q4 2023, from about SAR 931.28 billion in Q4 2022.

The following table shows Saudi Arabia's GDP by regulatory sector via MA Methodology in Q4 2023:

 The table below indicates Saudi GDP growth since 2018:

*Data is updated according to GASTAT estimates