The Saudi economy grew 5.5% in the fourth quarter of 2022 compared to the prior-year period, estimates from the General Authority for Statistics showed on Thursday, as non-oil activities boosted overall growth.
Non-oil activities grew 6.2% in the quarter year-on-year, outperforming the increase in oil activities which grew 6.1%, according to the agency.
Oil and gas activities accounted for just under 30% of GDP in the fourth quarter as the contribution of non-hydrocarbon sectors continued to gather momentum. Government services activites contributed 15.2% to overall GDP in Q4, the second biggest contributor after oil and gas.
The government has accelerated investments into mega projects and initiatives to progress Vision 2030 goals, its national economic transformation plan, and said the kingdom expects to record non-oil GDP growth of 6% or higher over the next three to five years.
Saudi's non-oil business sector activity soared to its highest level in eight years in February according to a survey, based on a strong increase in demand and an optimistic economic outlook.
Saudi Arabia, the world's top oil exporter, recorded real GDP growth of 8.7% in 2022 as higher oil prices boosted public finances, leading to the Gulf state's first budget surplus in almost a decade.
However, the International Monetary Fund in January lowered Saudi Arabia's GDP growth forecast for 2023 to 2.6% on lower expected output, although it said non-oil growth is expected to remain "robust".
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