RIYADH, Saudi Arabia, Dec. 29 (UPI) -- The gross domestic product tied to oil production in Saudi Arabia dropped more than 6 percent in 2009 because of price and output strains, the government said.
Oil GDP for Saudi Arabia, the largest oil producer in the world, fell 6.4 percent in 2009. Non-oil growth, however, led to an overall 0.15 increase in inflation-adjusted GDP.
Saudi Arabia relies on oil for the majority of its economic activity. The oil GDP decline is linked to production cuts meant to control plummeting oil prices during the recession that gripped world markets early this year, Emirati newspaper The National reports.
Oil prices peaked near $140 per barrel in 2008 before collapsing to below $40 per barrel. The Organization of the Petroleum Exporting Countries enacted a tight production quota in response, leaving Saudi Arabia with an 18-percent cut in oil output.
Economic analysts said the Saudi GDP outlook for 2010 is positive as global markets move out of recession.
