Arab News, Sun, Mar 10, 2024 | Shaban 29, 1445
Saudi industrial production rises 0.3% in January driven by mining activity
Saudi Arabia:
Saudi Arabia’s Industrial Production Index recorded a 0.3 percent monthly
increase in January, propelled by a marginal rise in mining and quarrying
activity, official data showed.
In January, manufacturing activities in the
Kingdom increased by 1.1 percent compared to December 2023, according to the
General Authority for Statistics, while mining and quarrying activities saw a
0.1 percent rise.
The increase in manufacturing activities in
January was fueled by a 1.7 percent surge in the production of coke and refined
petroleum products.
GASTAT reported a 1 percent increase in water
supply, sewage, waste management, and remediation activities in January compared
to the previous month.
On the other hand, there was a 9.6 percent
decrease in electricity, gas, steam, and air-conditioning supplies in January
compared to December 2023.
The IPI serves as an economic indicator reflecting
relative changes in industrial output volume, calculated through the production
survey.
The report, however, revealed that Saudi Arabia’s
IPI declined by 8.8 percent during the first month of 2024 compared to the same
period of the previous year.
The decrease in IPI was attributed to Saudi
Arabia’s decision to reduce oil production to 8.9 million barrels per day in
January 2024, as stated by the authority.
Mining and quarrying activities in January 2024
decreased by 14.3 percent compared to the same month of the previous year.
“Given the relative importance of mining and
quarrying activity, which amounted to 61.4 percent of the index weight, the
trend of the industrial production index in the mining and quarrying sector
dominates the trend in the general IPI,” stated GASTAT.
On the other hand, manufacturing activities saw a
0.1 percent increase in January compared to the same month the previous year.
This marginal rise was supported by a 1.7 percent increase in the manufacturing
of chemicals and chemical products.
The report also noted a 7.7 percent increase in
the manufacturing of paper and paper products, and a 5.4 percent rise in
electrical devices in January compared to the year-ago period.
However, the production of coke and refined
petroleum products decreased by 4.7 percent year on year in January, while the
manufacturing of food products declined by 8.2 percent during the same period.