GROSS DOMESTIC PRODUCT DURING THE FIFTH DEVELOPMENT PLAN 1990-1994

Gross Domestic Product (GDP) grew at an average annual rate of 4.1 percent (measured in constant 1989 prices) over the period of the fifth development plan 1990-1994. The oil sector’s share rose from 30 percent to 36.6 percent over the same period. Oil production was increased sharply to help maintain international oil supplies and stabilize prices during the Gulf war. The oil sector registered 66.7 percent growth rate in 1990, compared to 18.17 percent and minus 2.6 percent in 1989 and 1988 respectively. However, subsequent price fluctuations limited the impact of this volume increase on the structural composition of GDP.

The non-oil economy grew by 8.6 percent in real terms during the first year of the fifth plan. In the following years, however, the decline in government expenditure had a restraining influence on economic growth. Consequently, the non-oil value added grew at an average annual rate of 2.1 percent during the fifth plan as a whole. Table (3) shows the relative GDP contribution of the oil and non-oil sectors during the fifth development plan.

 

TABLE 3 *
Gross Domestic Product in the Fifth Plan 1990-1994 oil and non-oil sectors

Sector

Value Added at Current Prices (SR billion) Rates at

            1409/10H. - 1989                                    1414/15H. -1994

Average Annual Growth Rates at 1409/10 prices(%)

Target                                                      Actual
Non-Oil Sectors

Government Services
Other Non-Oil Sectors
215.0

57.8
157.2

 276.3

77.0
199.3

 3.7

0.8
4.5

 1.9

2.8
1.5
Oil Sector ** 93.3 161.1 2.7 8.9
Other Items *** 310.8 440.1 3.2 4.1

* Source: Ministry of Finance and National Economy, Central Department of Statistics, Kingdom of Saudi Arabia.
** Oil Sector is defined in this table according to the definition adopted by the CDS, which includes petroleum refining. 
*** Import duties less bank service charges.