Recession or Not, This Data May Disappoint Saudi Policy Makers
- Kingdom’s GDP falls 1.03% after shrinking 0.5% in 1st quarter
- Non-oil economy barely grows amid sluggish demand, data show
An employee looks out from the 32nd floor viewing platform of the Al Faisaliah Tower, as skyscrapers and commercial buildings stand beyond, in Riyadh, Saudi Arabia, on Thursday, Dec. 1, 2016. Saudi Arabia is working to reduce the Middle East’s biggest economy’s reliance on oil, which provides three-quarters of government revenue, as part of a plan for the biggest economic shakeup since the country’s founding.
Photographer: Simon Dawson/BloombergSaudi officials steering efforts to prepare the kingdom for the post-oil era will likely pay little attention to the main reason that caused the economy to shrink in two consecutive quarters for the first time since 2009.
The biggest Arab economy contracted at an annual rate of 1 percent in the second quarter, after shrinking 0.5 percent in the previous three months -- not an unexpected outcome at a time when OPEC members are cutting oil production to bolster prices.