Crude gives Saudi economy a leg up, but non-oil growth slows
Kingdom’s economic recovery still heavily relies on output of mineral, data shows
Dubai — Saudi Arabia’s economy grew in the fourth quarter of 2018 at its fastest rate since early 2016 due to an expansion in the oil sector, while non-oil growth was sluggish, statistics agency data showed on Sunday. Fourth-quarter GDP grew 3.59% from a year earlier. In the third quarter, annual growth was 2.5%. “The oil sector led the recovery in the final quarter, reflecting stronger production, particularly at the beginning of the quarter,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. Oil dependent The Saudi economy has suffered in recent years because of low oil prices and austerity measures aimed at reducing a huge budget deficit. In 2017, the economy shrank for the first time since the global financial crisis almost a decade earlier. The data on Sunday showed how the kingdom’s economic recovery still heavily relies on oil output. While the oil sector grew almost 6% year on year, growth in the non-oil sector — key for Saudi Arabia’s efforts to diversify its...
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