Saudi Arabia’s economy contracted 7% year-on-year in the second quarter of 2020 as the toll wrought by the Coronavirus pandemic and lower oil prices becomes clear, according to Bloomberg.
The oil sector shrank an annual 5.3%, while the non-oil sector declined by 8.2%. The non-oil private sector contracted by more than 10%.
Saudi Arabia has had success in controlling the spread of the Coronavirus.
Saudi Arabia’s proactive, significant steps to control the Coronavirus led to lockdowns across the Kingdom and measures that put the safety of its citizens over the economy. The new data released by the General Authority for Statistics and reported by Bloomberg indicates the cost of these lockdowns and the effect of the global economy and oil market pressure on the Saudi economy.
According to Bloomberg, Labor statistics released showed citizen unemployment rose to 15.4% during April to June, “the highest level recorded in data that goes back two decades. That, despite a government stimulus program that covered 60% of salaries for many Saudi workers,” according to the report.
Saudi Arabia has had success in controlling the spread of the Coronavirus and safeguarding its population from widespread infection and death. The Kingdom has seen 323,281 total cases of Coronavirus, with 318,542 (99%) recovered and 4,739 (1%)
