Saudi Arabia’s gross domestic product (GDP) grew by 1.1% in the second quarter, according to government estimates released on Monday, bolstered by a rise in non-oil activities, although overall growth slowed markedly from the corresponding period last year.

Last year, the Saudi economy expanded by 8.7%, placing it among the fastest-growing in the G-20, with high oil prices enhancing revenue and leading to the kingdom’s first budget surplus in nearly a decade.

However, the majority of growth forecasts for this year have been revised downwards, owing to lower oil prices and the likelihood of extended oil production cuts.

Oil activities fell by 4.2% in the second quarter, year-on-year, impinging on overall growth, while non-oil activities grew by 5.5%, according to data from the General Authority for Statistics.

In the second quarter of the previous year, real GDP growth was at 11.2%, invigorated by a rise in oil activities of nearly 23%.

The International Monetary Fund (IMF) last week reduced its 2023 GDP growth forecast for the world’s leading oil exporter to 1.9%, reflecting the effects of extended oil production cuts.

Saudi Arabia is anticipated to prolong a voluntary oil output cut of 1 million barrels per day for an additional month, including September, to furnish further support to the oil market. On Monday, oil prices were set to register the largest monthly gain in over a year.