Saudi Arabia's GDP shrank by 4.1 percent over the past year, compared to 0.3 percent growth in 2019, driven by the challenges imposed by the Corona pandemic and the drop in oil prices.
According to the General Authority for Statistics in Saudi Arabia, the GDP contracted by 3.8 percent in the fourth quarter of 2020, compared to the corresponding period of 2019. While the output grew by 2.8 percent in the fourth quarter, compared to the previous period of the same year. Saudi Arabia had expected its GDP to contract by 3.7 percent in 2020, due to being affected by the Corona outbreak and the decline in oil prices.
Saudi Arabia is the world's largest oil exporter, the third world producer, and the largest producer of OPEC. As of last May, Saudi Arabia began reducing its oil production to an average of 7.5 million barrels per day, in compliance with the decision to reduce production by 9.7 million barrels per day by the "OPEC +" coalition, of which one million barrels per day will be voluntary, while it is committed to 8.5 million barrels per day.
Prior to that, most vital facilities in the Kingdom were closed to prevent the outbreak of the pandemic, which resulted in a decline in the performance of the productive sectors, and a decline in domestic demand for consumption.
Source (Anadolu Agency, Edited)
