The Saudi economy "Saudi gross domestic product at constant prices" recorded a growth of 0.7 percent during the first nine months of 2019, to reach 1.955 trillion riyals, compared to 1.941 trillion riyals in the same period of 2018, supported by the non-oil sector.
The preliminary estimates released in the 2020 budget statement indicate that the Saudi economy grew by 0.4 percent in 2019.
Quarterly, the Saudi gross domestic product shrank at constant prices "2010 base year" by 0.46 percent during the third quarter of this year 2019, to reach 651.4 billion riyals, compared to 654.4 billion riyals in the same period of 2018.
According to the analysis of the reporting unit in the "Al-Iqtisadiah" newspaper, based on official data, Saudi gross domestic product decreased by SR 2.98 billion during the third quarter of 2019, compared to the third quarter of 2018.
The negative impact came mainly from the oil sector, which contracted by 6.4 percent in the third quarter, while the non-oil sector increased by 3.6 percent.
The private sector grew 4.2 percent, and the government’s GDP increased by 4.6 percent.
The contribution of the non-oil sector increased to 57.7%, while the contribution of the oil sector declined to 41.6%.
The private sector accounted for 41.9 percent of output, and 15.9 percent for the government sector in the third quarter of 2019.
The Saudi GDP consists of two organizational sectors, the oil sector, and the non-oil sector "that includes the private sector and the government sector".
Regarding the details of the regulatory sectors that make up the gross domestic product of Saudi Arabia, the oil sector contracted by 6.43 percent, after it reached 271.2 billion riyals in the third quarter of 2019, compared to 289.9 billion riyals in the third quarter of 2018, a decrease of 18.7 billion riyals, as a result of Saudi Arabia reducing its oil production, In compliance with the "OPEC +" agreement.
The contraction of the oil sector in the third quarter of 2019 is the second since the fourth quarter of 2017 when it contracted by 4.74 percent.
While the non-oil sector grew by 3.64 percent, after reaching 376.1 billion riyals in the third quarter of 2019, compared to 360.5 billion riyals during the third quarter of 2018, an increase of 15.6 billion riyals.
The non-oil sector growth in the third quarter of 2019 resulted mainly from an increase in private sector output of 4.2 percent, with a value of 272.6 billion riyals, compared to 261.6 billion riyals in the third quarter of 2018, an increase of 11 billion riyals.
The government sector also grew by 4.6 percent, after reaching about 103.4 billion riyals, compared to about 98.9 billion riyals, an increase of 4.6 billion riyals.
During the third quarter of 2019, the contribution of the oil sector amounted to 41.6% of Saudi gross domestic product, while the contribution of the non-oil sector amounted to 57.7%, and import duties were 0.6%.
The contribution of the non-oil sector was distributed between 41.9% for the private sector and 15.9% for the government sector.
With regard to the domestic product at current prices, it rose 0.04 percent in the third quarter of 2019, reaching 745.4 billion riyals, an increase of 308 million riyals over the levels for the same period of 2018 of 745.1 billion riyals.
What does gross domestic product mean?
GDP is defined as the market value of all final goods and services that are locally recognized, that are produced in a country during a specific time period.
The nominal GDP is "current prices", which is evaluated at current market prices. As for the real GDP, "fixed prices", it measures the actual quantities of goods and services produced at constant prices for a specific year, which is 2010 in relation to Saudi GDP.
The GDP indicators are estimates of the quarterly GDP at "constant and current" prices, showing expenditures on gross domestic product, and measuring the contribution of economic activities and the various organizational sectors to it.
Publishing indicators regularly aims to provide recent quarterly estimates of GDP at "current and constant" prices and the contribution of economic activities and various organizational sectors in it, and to provide quarterly modern economic indicators as rates of GDP growth and the relative contributions of economic activities and different organizational sectors to GDP, And provide all this data to support decision-makers and policy makers in various areas of development.