According to GASTAT, Saudi Arabia’s industrial production index increased by 4.1% in March 2023.
The latest report from the General Authority for Statistics (GASTAT) reveals that Saudi Arabia’s industrial output volume increased by 4.1% in March 2023, compared to the same period last year. The rise was attributed to high production levels in mining, quarrying, and manufacturing.
According to the report, mining and quarrying grew by 1.6% in March 2023, compared to the same period last year. This growth can be attributed to an increase in the production of mineral resources such as gold, copper, and zinc, which are key contributors to Saudi Arabia’s mining sector. The Kingdom’s increased oil production to more than 10 million barrels per day in March also contributed to this growth.
Furthermore, manufacturing was the largest contributor to the rise in industrial output volume, accounting for 66.5% of the total output. This sector grew by 5.2% in March 2023, compared to the same period last year. The main drivers of this growth were the food, chemical, and plastic products industries. The food industry, in particular, witnessed significant growth due to an increase in demand during the holy month of Ramadan.
The report also highlighted that the production of electricity, gas, steam, and air conditioning increased by 1.9% in March 2023, compared to the same period last year. This growth was driven by an increase in the production of electricity, which is a crucial component of the Kingdom’s infrastructure.
The General Authority for Statistics (GASTAT) report also provided data on the output volume index by economic activity. It revealed that the production of non-metallic mineral products grew by 10.2%, while the production of rubber and plastic products increased by 9.6%. Additionally, the production of basic metals and fabricated metal products increased by 8.8% and 8.7%, respectively.
The report highlighted that the increase in industrial output volume was achieved despite the ongoing challenges posed by the COVID-19 pandemic. The Kingdom has implemented strict measures to mitigate the impact of the pandemic on the economy, including the launch of stimulus packages and initiatives aimed at supporting the private sector.
The Saudi Arabian government’s Vision 2030 program has also played a crucial role in boosting the Kingdom’s industrial sector. The program aims to diversify the country’s economy away from its reliance on oil and gas exports and towards a more diversified economy with a focus on manufacturing and other non-oil industries. The program has resulted in increased investment in the country’s infrastructure, which has supported the growth of its industrial sector.
Commenting on the report, Ahmed Alhakbani, the CEO of General Authority for Statistics (GASTAT) , said: “The rise in industrial output volume reflects the continued resilience of Saudi Arabia’s economy despite the challenges posed by the COVID-19 pandemic. The government’s Vision 2030 program has played a crucial role in supporting the growth of the industrial sector, which is key to the Kingdom’s economic diversification efforts.”
He added: “We remain committed to providing accurate and reliable data on the performance of the Kingdom’s economy. This data is crucial in supporting the government’s efforts to make informed decisions that drive economic growth and create job opportunities for Saudi nationals.”
In conclusion, the latest report from General Authority for Statistics (GASTAT) highlights the resilience of Saudi Arabia’s industrial sector, which has continued to grow despite the challenges posed by the COVID-19 pandemic. The rise in industrial output volume was driven by high production levels in mining, quarrying, and manufacturing, as well as the government’s initiatives to diversify the economy away from oil and gas exports. The report is a positive indication of the Kingdom’s economic growth trajectory, and it is expected to support investor confidence in the country’s industrial sector.
