RIYADH (Reuters) -Saudi Arabia’s gross domestic product (GDP) grew 3.9% in the second quarter of 2025 driven by the non-oil sectors, according to government data estimates released on Monday.
Non-oil activity grew by 4.6% compared to the same quarter last year, according to the Saudi General Authority for Statistics. Sectors like electricity, gas and water showed the highest growth followed by finance, insurance and business activities.
The economy grew across all sectors with oil up 3.8% and government activities growing 0.6%.
Oil activities showed largest growth compared to the first quarter, rising by 5.6%.
The Saudi-led OPEC+ agreed to further raise oil production on Sunday, as the kingdom pushes to regain market share.
The eight members of OPEC+ agreed on Sunday in an online meeting to raise production from October by 137,000 barrels per day, much lower than the monthly increases of about 555,000 bpd for September and August and 411,000 bpd in July and June.
The increases in output have led to a fall in oil prices of around 15% so far this year. Prices have not collapsed, however, trading at around $65 a barrel, supported by Western sanctions on Russia and Iran.
The lower oil prices are predicted to weigh on the Saudi economy, with the International Monetary Fund saying Riyadh needs a price over $90 per barrel to balance its books.
Saudi Arabia is in the midst of a costly economic transformation program known as Vision 2030 that aims to wean the economy off oil dependency and is spending billions to boost sectors like tourism, entertainment and sports.
Saudi Arabia’s 2025 fiscal deficit is forecast at around 101 billion riyals ($27 billion).
(Reporting by Pesha Magid; Editing by Andrew Cawthorne)
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