Saudi Arabia, the world’s largest energy exporter, has seen a significant decline in its total exports, including both oil and non-oil exports, according to recent reports. Online portal Zawya stated that the country experienced a 25% year-on-year decrease, with total exports amounting to $28 billion in March, compared to $37 billion in the same period last year.
Analysts attribute the decline in exports primarily to the softening of energy prices and reduced demand in Europe and the United States. This is believed to be a result of a combination of factors, including higher interest rates and ongoing economic turmoil.
Specifically focusing on oil exports, there was a decline of 26% or 30 billion riyals, with figures from the General Authority for Statistics indicating a drop from 113.1 billion riyals in March 2022 to 83.1 billion riyals in March 2023. Consequently, the proportion of oil exports in the overall export mix decreased from 79.6% to 78.3% during this period.
In contrast, data from the Joint Organisations Data Initiative (JODI) indicated a slight 1% increase in Saudi crude oil exports in March, reaching 7.52 million barrels per day (bpd) compared to 7.46 million bpd in February.
Regarding non-oil exports, including re-exports, there was a year-on-year decline of 21%, amounting to $6.7 billion in March 2023 compared to $7.7 billion in March 2022. However, on a month-on-month basis, non-oil exports showed a modest increase of 7.2% or 1.5 billion riyals.
At the same time, merchandise imports experienced a notable rise of 10% or $1.46 billion in March 2023, totaling $16.54 billion compared to the same period the previous year. As a result, the country achieved a positive trade balance of $11.74 billion.
