Saudi Arabia’s economy recorded a steep year-over-year contraction in the second quarter of 2026, with GDP falling by 4.80%, according to data updated on 30 July 2026. This marks a dramatic turnaround from the first quarter of 2026, when GDP was still expanding at a 3.00% annual rate.
On a year-over-year comparison basis, the latest reading represents a 7.8 percentage-point swing in growth momentum between the first and second quarters. While the first quarter showed solid expansion versus the same period a year earlier, the second-quarter figures indicate that overall economic activity is now significantly weaker than a year ago.
The data highlight a rapid deterioration in Saudi Arabia’s growth trajectory within just one quarter. Both the “previous” and “actual” indicators compare performance to the same period a year before, underscoring that the shift is not seasonal but reflects a genuine change in the underlying economic trend.
