Saudi Arabia’s economy shrinks for fifth consecutive quarter

  • Date: 20-Dec-2020
  • Source: Middle East Observer
  • Sector:Economy
  • Country:Saudi Arabia
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Saudi Arabia’s economy shrinks for fifth consecutive quarter

Saudi Arabia's economy contracted for a fifth straight quarter as the kingdom curtailed crude production to fulfill its commitments to OPEC, though the non-oil sector – the engine of job creation – showed signs of improvement.Gross domestic product shrunk 4.6% in the third quarter compared to the same period of last year, according to the statistics authority. In line with most other nations, that was an improvement from a 7% contraction between April and June as the worst effects of the coronavirus pandemic wore off.The oil economy fell 8.2% – the biggest drop since at least the start of 2011, when Bloomberg began compiling such data – as OPEC curbed output to prop up prices. Brent crude has risen to about $51 a barrel since the cuts started, but the global benchmark is still down 22% this year.The non-oil sector lost less steam. It declined by 2.1%, compared to 8.2% in the second quarter, as the government eased virus restrictions and businesses gradually reopened.The overall figure was slightly worse than an estimated contraction of 4.2% released by the statistics body last month, which didn't include a breakdown by sector.The world's largest oil exporter is facing a dual crisis this year as the pandemic and