Saudi Arabia Reports First GDP Contraction Since 2009

1 Jul 2017   Saudi Arabia

Saudi Arabia’s gross domestic product fell in the first quarter of 2017 year-over-year, marking the first time the top oil exporter’s economy contracted after the 2014 oil price crash. Government data revealed a 0.5 percent contraction between January and March – the first such occurrence since 2009. The KSA’s economy shrunk due to production cuts it made as part of a deal with the Organization of Petroleum Exporting Countries (OPEC) to limit bloc-wide output to 32.5 million barrels per day. Saudi Arabia has consistently cut production more than required under the deal. Riyadh was due to limit production to 10.06 million barrels per day per its quota, but in February its reported production rate stood at just 9.8 million barrels per day. The non-oil public sector shrunk by 0.1 percent, demonstrating the Kingdom’s resolve in cutting spending as oil revenues—the nation’s main source of income—remain low. The non-oil private […]

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