Saudi GDP grew 3.2% in 2021, highest in seven years
Saudi economic progress includes growth in the non-oil sector, as foreign direct investment moves more slowly.
Saudi Arabia reported today that its gross domestic product (GDP) grew 3.2% for 2021.
The growth was aided by a strong finish to the year, with Saudi GDP rising 6.7% in the fourth quarter of 2021, compared to the same period in 2020. The growth on the year was due to both the oil and non-oil sectors, and the latter increased 5.1% in the fourth quarter of 2021, the Saudi General Authority for Statistics said in a report.
Why it matters: Saudi Arabia’s GDP actually shrank by 4.1% in 2020 amid the COVID-19 pandemic, so today’s news indicates a degree of economic recovery. The 2021 GDP is actually Saudi Arabia’s highest since 2015, when the figure increased by 4.1%, according to data from The World Bank.
Lockdowns and business closures imposed by Saudi authorities in 2020 had a strongly negative effect on the domestic economy.
