Report: Industrial production in Saudi Arabia reaches its highest level since April 2020

The Al-Eqtisadiah newspaper reported that “Industrial production index increased by 24% in May last year compared to the same month of the previous year, which is the third growth rate since the launch of the index in early 2019.

In a report based on official data verified by its reporting arm, Al-Eqtisadiah stated that “May’s increase is the 13th consecutive since May 2021, as the previous 12 months from May 2020 to April saw a decline. 2021 due to the consequences of the corona pandemic.”

Al-Ektisadiya’s report states that “Industrial production index in May reached 131.8 points, which is the highest level in 25 months, that is, since mining on an annualized basis, was the result of an increase in mining production by 23, 3% (a record weight in this indicator of 74.5), as a result of the fact that Saudi Arabia raised its oil production to its highest level by more than ten times. million barrels per day.

The report added that “the mining activity index was 130 points in April, compared to 105 points in the same month of 2021, and that mining activity recorded its highest level when it reached 147.2 points in April 2020, after Saudi Arabia lifted oil production to its highest record level of 12 million bpd” as “Saudi Arabia is known to have committed to cutting oil production starting in May 2020 as part of the OPEC+ alliance to support markets when they affected by the Corona pandemic.”

In its report, Al-Ektisadiya indicated that “the production of manufacturing activities (the second activity by weight of 22.6%) also increased by 28.8% in May last year compared to the same month in 2021 to recover from the effects of the pandemic. of the coronavirus that has affected the world in recent times,” explaining: “Production in the electricity and gas sector increased by 3% compared to the same month in 2021, knowing that the weight of this activity in the index is 2.9. %.”

According to the report, the industrial production index increased by 1.2% on a monthly basis in May 2022 compared to the previous month as a result of an increase in production in the mining industry by 0.9%, while in the manufacturing industry there was a decrease of 0.2 % compared to the previous month, while it rose by 0.9%. Production in electricity and gas supply is 24.9% with a slight impact on the index of industrial production due to its low weight.

According to Al-Ektisadiya, “Industrial production index is a measure of relative change, and it reflects the development that takes place in the volume of production of materials and goods, taking into account the difference in time. Comparison.”

Source: The Economist.

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