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Investing.com -- Saudi Arabia’s economy expanded by 2.1% in the second quarter of 2025 compared to the previous quarter, according to flash estimates released Thursday.
This growth rate marks an improvement from the 1.1% expansion recorded in the first quarter, primarily driven by the unwinding of oil production cuts. Year-on-year growth increased from 3.4% to 3.9%.
The breakdown of data shows that oil GDP grew by 5.6% quarter-on-quarter, the fastest pace in four years, after contracting for three consecutive quarters. This growth coincides with OPEC+ beginning to raise output from April and the accelerated production pace that Saudi Arabia pushed for from June.
Private non-oil GDP increased by 1.6% quarter-on-quarter, though its year-on-year growth slightly slowed from 4.9% in the first quarter to 4.7% in the second quarter.
Government activities contracted by 0.8% quarter-on-quarter in the second quarter, representing the weakest performance in two years. This decline likely reflects a reported shift among policymakers to reduce spending in areas such as gigaprojects as oil prices have decreased.
Economic growth in Saudi Arabia is expected to accelerate further as oil output continues to rise in the second half of the year, although this will mask softer activity in the non-oil sector.
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