Saudi Arabia’s economy grew 2.8% in the fourth quarter of 2020 compared to the previous three months, spurred by a decline in Covid-19 cases and the easing of restrictions.
The largest Arab economy shrank 4.1% last year, flash estimates from the General Authority for Statistics showed Wednesday, the sharpest contraction in more than three decades. The figures are in line with estimates from the International Monetary Fund. Gross domestic product contracted 3.8% in the fourth quarter compared with the same period the previous year.
Like other Gulf oil producers, Saudi Arabia was hit hard last year as a drop in crude prices decimated government revenue while measures to stop the spread of the coronavirus limited economic activity. Although benchmark Brent crude rose above $60 per barrel for the first time in a year this week, a new set of restrictions to combat Covid-19 might cloud future growth prospects.
The statistics authority said more details on economic growth, including a breakdown of oil and non-oil GDP, would be published on March 21. Saudi Arabia didn’t disclose a breakdown of revenue in its annual budget statement last year as doing so would give clues about the state of energy giant Aramco’s dividend plans.
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