GASTAT: Saudi Arabia’s Industrial Production Index Increased by 0.9%

GASTAT: Saudi Arabia’s Industrial Production Index Increased by 0.9%

According to official data, Saudi Arabia’s Industrial Production Index increased by 0.9 percent in May over the previous month due in part to the country’s manufacturing of food and chemicals.

The General Authority for Statistics reports that in the fifth month of 2024, the index reached 106.3 points thanks to a 0.8 percent increase in this sector.

While the production of refined petroleum products and coke fell by 0.4 percent over the same time, the manufacturing of non-metallic products climbed by 0.9 percent.

Since Saudi Arabia is slowly diversifying its economy by lowering its dependency on oil, the Kingdom’s expansion in the industrial sector is essential to attaining the objectives specified in Vision 2030.

The Kingdom’s Vision 2030 website states that Saudi Arabia “will work toward localizing renewable energy and industrial equipment sectors” in the manufacturing sector.

An economic indicator that shows how the volume of industrial output has changed relative to other indicators is the IPI. Based on production surveys, it is computed.

On the other hand, May showed a 2.9 percent yearly decline in the Saudi Arabian IPI overall.

GASTAT reports that a 9.7 percent year-over-year decline in mining and quarrying activity in May was the primary cause of the IPI’s dip.

This decline was ascribed to Saudi Arabia’s plan, in accordance with an accord by OPEC and its allies, known as OPEC+, to reduce its oil output to 8.9 million barrels per day in May 2024.

Also Read:

OPEC Increases its Forecast for World Economic Growth to 2.9%

Saudi Arabia’s Foreign Exchange Earnings Reach $3.4 Billion: SAMA

 

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