Saudi economy could contract in 2023 following oil output cut: Analysts

Saudi Arabia’s economy is likely to contract by 0.5% this year following its decision on Sunday to cut oil output, Capital Economics forecasts.

The research firm had previously forecast Saudi gross domestic product (GDP) growth of 1% this year.

The kingdom’s energy ministry said on Sunday the country would cut its oil output to 9 million barrels per day (bpd) in July from around 10 million bpd in May, the biggest reduction in years as the country and other producers seek to shore up flagging oil prices.