Saudi Arabia Slides Back To Recession

Dubai : Saudi Arabia's economy has slipped back into recession as the oil sector stagnates and the government sector is hit by austerity policies designed-

To curb a state budget deficit caused by low oil prices, official data showed on Saturday.

Gross Domestic Product, adjusted for inflation, shrank 2.3 per cent from the previous quarter in the  April-June period, after dropping 3.8 per cent in the first quarter.

Economists generally define a recession as two straight quarters of shrinking GDP, measured by  quarter-on-quarter rates.

Saudi Arabia was last in recession  -a shallower one- in early 2016.

A price supporting agreement among global oil producers caused Saudi Arabia to reduce its oil output early early this year, pulling down GDP.

The oil sector shrank 1.8 per cent from a year ago in the second quarter after a 2.3 per cent fall in the first.


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