Saudi Arabia’s economy suffered its biggest contraction since 2020 during the third quarter, after the kingdom cut oil production to push up prices.
Gross domestic product shrunk 4.5% in the third quarter compared to a year earlier, driven by a 17% drop in the oil economy, according to preliminary data by the General Authority of Statistics. Growth in the non-oil economy also slowed.
That’s the biggest contraction in three years, when the coronavirus pandemic was wreaking havoc across global economies, and the first output drop since the start of 2021.
The world’s biggest crude exporter enacted a unilateral oil production cut in July, putting its output at 9 million barrels a day. The kingdom’s now producing almost 1 million barrels a day below its average for the past decade, and seems likely to remain at current output levels until at least the end of this year.
No comments:
Post a Comment