Saudi Arabia’s exports drop 25% year-on-year

Saudi Arabia’s merchandise exports fell 25.1% year-on-year, last August, driven by the decline in crude oil prices, the Kingdom’s main source of income.

The Saudi General Statistics Authority said in a statement today, Sunday, that the value of commodity exports amounted to 57.37 billion riyals (15.3 billion dollars) in August, down from 76.64 billion riyals (20.43 billion dollars) on an annual basis.

Oil exports accounted for 69% of total exports, amounting to $ 10.56 billion in August 2020, while the share of non-oil exports reached 31%, valued at $ 4.72 billion.

Oil prices recorded sharp declines this year, driven by the decline in demand for crude in the global market; Due to the negative consequences of the outbreak of the Corona pandemic, amid a drop in consumption.

The Kingdom’s merchandise imports decreased by 17.3% year-on-year to $ 10.4 billion, down from $ 12.57 billion in August 2019, as the decline was driven by a drop in consumer demand due to the Corona pandemic.

Due to closures in some sectors inside the Kingdom, and the decline in domestic commodity consumption, the value of imports from abroad decreased by a varying rate according to the sectors.

The Saudi trade balance surplus (the difference between the value of exports and imports) decreased in August to $ 4.9 billion, down from $ 7.86 billion in the corresponding period of 2019.

Saudi Arabia is the largest producer of crude oil in the Organization of the Petroleum Exporting Countries (OPEC), with an average of 11 million barrels per day in normal conditions, and the largest exporter in the world with an average of 7.5 million barrels.