Saudi Arabia’s Industrial Production Index up 7.3% year-on-year: GASTAT

- Business - February 9, 2023
Saudi Arabia's Industrial Production Index up 7.3% year-on-year: GASTAT
Saudi Arabia's Industrial Production Index up 7.3% year-on-year: GASTAT

RIYADH: Saudi Arabia’s industrial production index rose 7.3 percent year-on-year in December 2022, primarily due to high output in mining and quarries, as well as manufacturing, a new report from the General Authority for Statistics showed.

After months of negative trends in 2019 and 2020 due to the COVID-19 pandemic, Saudi Arabia’s IPI turned positive in May 2021 and has been growing steadily ever since. The GASTAT report noted that the mining and quarrying sector increased by 4.1 percent in December 2022 compared to the same month in 2021.

Saudi Arabia’s mining and quarrying activities also increased as the kingdom increased its oil production to more than 10 million barrels per day in December 2022. The report also noted that manufacturing activity increased by 18.5 percent in December 2022 compared to December 2021.

Saudi ArabiaSaudi Arabia's Industrial Production Index up 7.3% year-on-year: GASTAT's Industrial Production Index up 7.3% year-on-year: GASTAT

Saudi Arabia’s Industrial Production Index up 7.3% year-on-year: GASTAT

Saudi Arabia’s Industrial Production Index up 7.3% year-on-year: GASTAT

The report states that the relative weights of the mining and quarrying, manufacturing, and power and gas utilities sectors in the IPI are 74.5 percent, 22.6 percent, and 2.9 percent, respectively.

“Therefore, the trend of the industrial production index in the mining and quarrying sector dominates the trend in the general IPI,” he added. In December 2022, Saudi Arabia’s electricity and gas supplies fell 6.5 percent compared to the same month in 2021.

GASTAT: reports noted that the mining and quarrying sector rose by 4.1 percent in December 2022 compared to the same month in 2021.

According to the report, the manufacturing sector remained unchanged in December 2022 compared to the previous month, while electricity and gas supplies fell by 5.3 percent. Although Saudi Arabia’s IPI still shows positive trends, its growth has slowed year-on-year for the eighth consecutive month from 26.7% year-on-year growth reported in April 2022.

It should be noted that Saudi Arabia’s IPI growth in December is the slowest in 2022 as it went below the 11.1 percent year-on-year growth reported in January last year.

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