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FINANCIAL NEWS
Saudi Q1 economy drops to near zero
04 Jul 2016
(MENAFN) Saudi Arabia’s economy spread at its slowest rate in 3 years among the Q1 of 2016 as low oil prices obliged the government to reduce spending and increase costs for industry.
However, GDP, adjusted for inflation increased by 1.5 percent from a year earlier between Jan and March, down from a growth rate of 1.8 percent in Q4 of 2015.
On the other hand, the oil sector expanded 5.1 percent in Q1 of this year, as the world’s biggest oil exporter grew its production of crude and exported more refined products.
The non-oil sector shrank 0.7 percent, which may be a source of concern to Saudi strategy makers due to a reform plan to help the economy cope with an era of cheap oil.
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