Official Data: Saudi Economy Contracts 4.8% in Spring 2026 Amid Hormuz Closure

Preliminary estimates from Saudi Arabia's General Authority for Statistics, reported by IRNA via the outlet Al Araby Al Jadeed, show the kingdom's real GDP shrank 4.8 percent year on year in the second quarter of 2026, driven mainly by a 24.7 percent contraction in the oil sector. A July 30 report also showed GDP down 4.9 percent quarter on quarter, tied to a 21.5 percent drop in oil activity, while the Financial Times reported on July 31 that the months long US and Israeli campaign in the region has weighed heavily on the Saudi economy. Economists told Al Araby Al Jadeed that the closure of the Hormuz and Bab el Mandeb straits has curbed Saudi oil exports, and the IMF has cut its 2026 Saudi growth forecast to about 1.7 percent.