Saudi Arabia's Economy Remains Steady Despite Oil Price Pressures
Saudi Arabia's economy grew 1.3% year on year in the fourth quarter of 2024, preliminary government data showed on Sunday, supported by increased non-oil and government activities.Non-oil growth rose 4.3% and government activities were up 2.6%, while oil activities declined by 4.5%. Growth in the kingdom is expected to remain muted this year, with low oil prices continuing to weigh on government revenue.The OPEC+ oil producer group plans to increase output in April, rolling back cuts agreed in stages since 2022 to support the market.
- The Saudi government's ability to balance economic growth with oil price volatility will be tested by the upcoming OPEC+ production increases, which could impact the kingdom's fiscal revenues.
- As Saudi Arabia continues to diversify its economy, how will the country's reliance on non-oil sectors evolve in the coming years and what role will private sector investments play in driving growth?