Saudi Arabia’s financial system contracted 7 per cent within the second quarter from a yr earlier as citizen unemployment hit its highest stage on document, illustrating the injury wrought by the oil market turmoil mixed with the coronavirus pandemic.
The oil sector shrank an annual 5.three per cent, whereas the non-oil sector declined by eight.2 per cent, in keeping with information launched on Wednesday by the statistics authority. The non-oil personal sector — the engine of job creation —contracted by greater than 10 per cent.
Labour statistics launched on the similar time confirmed that citizen unemployment rose to 15.four per cent throughout April to June, the very best stage recorded in information that goes again twenty years. That, regardless of a authorities stimulus program that lined 60 per cent of salaries for a lot of Saudi employees.
The world’s largest oil exporter is dealing with a twin disaster this yr because the pandemic, vitality output cuts and decrease crude costs mix to derail a fragile financial restoration from the final oil-price rout.
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