Saudi Arabia's economy was 1.4 percent larger in the second quarter of 2016 compared to the year-earlier period, according to the latest Quarterly GDP Update from Jadwa Investment.
It said year-on-year growth in the Gulf kingdom continued to slow for the fourth consecutive quarter, mainly owing to a deceleration in annual GDP growth for both the oil sector and the non-oil private sector.
It added that annual growth in non-oil government sector GDP turned positive following two consecutive quarterly contractions.
Jadwa said that within the non-oil private economy, transport and finance were the fastest growing sectors in Q2.
It added that utilities, construction, wholesale and retail, and non-oil manufacturing all saw negative annual growth for the second consecutive quarter.
"We expect continued growth in oil production during the second half of 2016, while the slowdown in non-oil GDP will moderate," said Jadwa in the update, adding that it has revised its 2016 full-year GDP forecast to 1.1 percent, down from an earlier forecast of 1.7 percent.
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