Saudi Arabia’s GDP saw a 1.7% decrease in the first quarter

The General Authority for Statistics in Saudi Arabia reported a 1.7% decrease in the country’s real GDP during the first quarter of 2024 compared to the same period in 2023. The decrease was attributed to an 11.2% decline in oil activities, while non-oil activities saw an increase of 3.4% and government activities grew by 2%.

The Authority explained that it shifted to using the moving chain methodology in the national accounts to calculate the real gross domestic product. This methodology provides a more dynamic approach to measuring economic growth rates by using weights and prices from the year before the measurement year. This new method more accurately reflects the current economic conditions in the country compared to the previous fixed base year methodology.

By adopting the moving chain methodology, the Authority aims to provide more accurate and timely economic data that accurately reflects the economic activities in Saudi Arabia. This methodology allows for a more precise measurement within the framework of contiguous time periods, allowing for a better understanding of the country’s economic performance.

Overall, the implementation of the moving chain methodology in the calculation of the real GDP of Saudi Arabia will provide a more accurate and dynamic representation of the country’s economic growth rates. This shift is intended to enhance the accuracy and reliability of economic data provided by the General Authority for Statistics, ensuring that policymakers and analysts have access to up-to-date and precise information for decision-making and analysis.