Saudi economy escapes recession in first quarter

Saudi Arabia’s economy pulled out of recession in the first quarter of 2018, thanks to rising oil prices and a surge in the non-crude sector, authorities said yesterday, reports AFP from Riyadh.

The kingdom’s economy grew by 1.15 percent in the first three months of the year compared to the same period last year when it shrank by 0.84 percent, according to the General Authority for Statistics.

The body attributed the growth to a 2.7 percent jump in the non-oil sphere and a 0.62 percent rise in the oil sector, which contracted by nearly 2 percent in the first quarter of 2017.

Oil prices have been steadily rising since early 2016, when OPEC and non-OPEC producers struck a deal to cut output.

The cut in oil revenue—which accounts for 70 percent of government income—pushed the OPEC kingpin’s economy into negative territory last year for the first time since 2009, a year after the global financial crisis.

The reports of growth come as Crown Prince Mohammed bin Salman pushes a package of sweeping economic and social reforms in the kingdom.

As part of his Vision 2030 plan, the heir to the throne plans to reduce Riyadh’s dependence on oil, boost tourism and massively invest in the underdeveloped entertainment sector to increase domestic spending.

 

Saudi economy escapes recession in first quarter

Saudi Arabias economy pulled out of recession in the first quarter of 2018, thanks to rising oil prices and a surge in the non-crude sector, authorities said yesterday, reports AFP from Riyadh. The kingdoms economy grew by 1.15 percent in the first three months of the year compared to the same period last year when it shrank by 0.84 percent, according to the General Authority for Statistics. The body attributed the growth to a 2.7 percent jump in the non-oil sphere and a 0.62 percent rise in the oil sector, which contracted by nearly 2 percent in the first quarter of 2017. Oil prices have been steadily rising since early 2016, when OPEC and non-OPEC producers struck a deal to cut output. The cut in oil revenuewhich accounts for 70 percent of government incomepushed the OPEC kingpins economy into negative territory last year for the first time since 2009, a year after the global financial crisis. The reports of growth come as Crown Prince Mohammed bin Salman pushes a package of sweeping economic and social reforms in the kingdom. As part of his Vision 2030 plan, the heir to the throne plans to reduce Riyadhs dependence on oil, boost tourism and massively invest in the underdeveloped entertainment sector to increase domestic spending.