Saudi Arabia's Economy Shrinks 4.5% in Q3 on Record Oil Sector Decline Due to Production Cuts
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Saudi Arabia's economy contracted 4.5% in Q3 2023, the largest decline since the Covid pandemic in 2020, due to oil production cuts.
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The oil sector shrank 17.3% in Q3, the most on record since at least 2011, as output was cut to 9 million barrels per day.
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Cuts were made to shore up global oil prices amid signs of weakening demand due to the slowing global economy.
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S&P predicts sluggish 1.1% Saudi growth in 2024 as production cuts are slowly unwound through 2025.
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Unlike Saudi Arabia, the UAE economy grew 3.7% in H1 2022 thanks to expansion in the non-oil sector.