Middle East & Central Asia News
LAST UPDATE: June 10, 2025
Saudi Arabia’s first-quarter GDP grows by 3.4%, beating flash estimates
Saudi Arabia reported 3.4% year-on-year GDP growth in Q1 2025, exceeding the previous flash estimate of 2.7%. This reflected a modest oil sector contraction (–0.5%) and strong non‑oil growth (4.9%).
Insight
The stronger GDP performance underlines Saudi Arabia’s Vision 2030 strategy, diversifying away from oil dependence. Robust private-sector expansion counterbalanced weaker oil output. Nonetheless, a widening fiscal deficit remains a concern, especially with oil prices hovering around $60/barrel—well below the ~$90 needed to balance state budgets.
