The contraction of the oil sector was the result of reducing the Saudi oil production, a commitment to the agreement of "OPEC '" in an attempt to maintain the stability of the oil market. As for the private sector, it grew by 3.78 percent in 2019, and the GDP of the government sector increased by 2.2 percent.
The contribution of the non-oil sector increased to about 57.9% in 2019 compared to 56.2% in 2018, while the contribution of the oil sector declined to 41.5% compared to 43.2% in 2018. The private sector accounted for 40.7% of the output and 17.2% For the government sector in 2019.
Regarding the details of the regulatory sectors that make up the gross domestic product of Saudi Arabia, the oil sector contracted by 3.65 percent, reaching 1.096 trillion riyals in 2019 compared to 1.138 trillion riyals in 2018, a decrease of 41.5 billion riyals, as a result of Saudi Arabia reducing its oil production in compliance with the "OPEC +" agreement.
While the non-oil sector grew by 3.31 percent, after it reached 1.527 trillion riyals in 2019 compared to 1.478 trillion riyals in 2018, an increase of 48.9 billion riyals.
The growth of the non-oil sector in 2019 resulted mainly from an increase in the private sector's output by 3.78 percent to an output of approximately 1.074 trillion riyals, compared to 1.035 trillion riyals in 2018, an increase of 39.1 billion riyals.
The government sector also grew by 2.2 percent, after it reached about 453.6 billion riyals, compared to about 443.8 billion riyals, an increase of 9.8 billion riyals.
With regard to the domestic product at current prices, it increased by 0.82% in 2019, reaching 2.974 trillion riyals, an increase of 24.2 billion riyals over the 2018 levels of 2.949 trillion 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 fixed prices for a specific year, which is 2010 in relation to the Saudi GDP.
The GDP indicators are estimates of the quarterly GDP at "current and constant" prices, showing expenditures on gross domestic product, and measuring the contribution of economic activities and the various regulatory sectors to it.
The publication of indicators on a regular basis is aimed at providing modern quarterly estimates of GDP at "current and constant" prices and the contribution of economic activities and the various organizational sectors in it, and providing quarterly modern economic indicators as rates of GDP growth and the relative contributions of economic activities and the various organizational sectors of GDP, And provide all this data to support decision makers and policy makers in various areas of development.
