Saudi Arabia GDP falls in second quarter as oil activity contracts amid Middle East war

Saudi Arabia's contraction was largely driven by a 24.7% decline in oil activity, according to data from the General Authority for Statistics. (EPA Images pic)DUBAI: Saudi Arabia's real gross domestic product fell 4.8% in the second quarter compared to the same period a year earlier, preliminary government estimates showed on Thursday, as war in the Middle East impacts the world's top oil exporter and wider Gulf.The contraction was largely the result of a 24.7% drop in oil activity, showed data from the General Authority for Statistics (GASTAT). Non-oil and government activity ticked up 0.9% and 0.6% respectively.The US attacked Iran on Wednesday, intensifying a five-month-old war that has disrupted shipping and energy markets and affected countries in the region beyond the main fronts.Most Gulf economies will contract more sharply this year than expected three months ago before rebounding in 2027, a Reuters poll found this month.GASTAT said oil activity in the quarter contributed negatively to real GDP growth by 5.4 percentage points, while non-oil activity contributed positively by 0.4 percentage point.