The Saudi economy grew 5.5 percent in the fourth quarter of 2022 compared to the prior-year period, estimates from the General Authority for Statistics showed on Thursday, as non-oil activities boosted overall growth.
Non-oil activities grew 6.2 percent in the quarter year-on-year, outperforming the increase in oil activities which grew 6.1 percent, according to the agency.
Oil and gas activities accounted for just under 30 percent of the gross domestic product in the fourth quarter as the contribution of non-hydrocarbon sectors continued to gather momentum.
Government services activities contributed 15.2 percent to overall GDP in the fourth quarter, the second biggest contributor after oil and gas.
The government has accelerated investments into mega projects and initiatives to progress Vision 2030 goals, its national economic transformation plan, and said the Kingdom expects to record non-oil GDP growth of 6 percent or higher over the next three to five years.
Saudi's non-oil business sector activity soared to its highest level in eight years in February according to a survey, based on a strong increase in demand and an optimistic economic outlook.
Saudi Arabia, the world's top oil exporter, recorded real GDP growth of 8.7 percent in 2022 as higher oil prices boosted public finances, leading to the Gulf state's first budget surplus in almost a decade.
However, the International Monetary Fund in January lowered Saudi Arabia's GDP growth forecast for 2023 to 2.6 percent on lower expected output, although it said non-oil growth is expected to remain "robust".