Jadwa Investment recently released a report about GDP growth in Saudi Arabia, noting that the private sector was leading real GDP growth in the second quarter of 2012.
Latest economic growth data released last week confirm that the healthy performance of the Saudi economy continued into the second quarter of 2012 albeit at slower pace than previous quarters. In real terms (that is, adjusted for price movements) the economy was 5.5 percent larger in the second quarter of 2012 than in the same quarter of 2011. The non-oil private sector registered the highest year-on-year growth in the second quarter supported by a robust expansion in the construction and transport and communication sectors as well as strong domestic demand.
At 5.5 percent, year-on-year growth in the second quarter was down from 5.9 percent in the first quarter of 2012. In fact, the second quarter real GDP growth registered the slowest growth rate since such data was published in 2010. The decline in the growth rate is mostly due to base-effect as the strong growth in the second quarter of last year was affected by short-term government stimulus. Despite such slower growth, five out of the ten sectors registered improvements in the second quarter compared to that in the first quarter.
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