Saudi Economy Shrinks Again, Dragged Down by Oil Cuts

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Saudi Arabia’s genuine GDP in the fourth quarter fell by 3. 7% year-on-year, according to preliminary estimates released through the General Statistics Authority on Wednesday.

This decline is higher than the 4. 4% year-on-year drop in the third quarter.

The drop was attributed to a 16. 4% decline in oil activities, while non-oil activities and government activities increased by 4. 3% and 3. 1% year-on-year, respectively.

For the year as a whole, Saudi Arabia’s economy contracted 0. 9 percent, according to the data.

Over the past year, the world’s largest crude exporter has cut output in a bid to push prices higher. Saudi Arabia has also borne the lion’s share of new voluntary crude production cuts agreed through some members of the Organization of the Petroleum Exporting Countries and its allies.

The kingdom’s economy depends on its oil sector, which accounts for 42% of its GDP.

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