DUBAI (Reuters), – Saudi Arabia’s third quarter GDP grew 6.8% compared to a year ago, marking the fastest growth since 2012. Official data was released Tuesday. This is as Saudi Arabia, world’s largest oil exporter, reaps the benefits of rising global energy demand.

According to flash estimations, the General Authority for Statistics stated that this positive growth is due to the 9.0% increase in oil activities and rising global demand for it.

According to it, the real GDP (real gross domestic product) adjusted for seasonality grew by 5.8% quarter on quarter due to 12.9% increase in oil activities.

The twin shocks of last year’s record-low crude oil prices and COVID-19, which were both pandemics that ravaged the Arab largest economy, hit it hard.

However, the economy rebounded in this year due to easing coronavirus restrictions, an increased crude oil price, and a vaccination rollout.

Flash estimates indicated that non-oil activity experienced 6.2% annual growth during the third quarter.

“Saudi Arabia’s economic recovery looks to have picked up speed in Q3 and should remain strong over the rest of this year and 2022, underpinned by rising oil output”, London-based Capital Economics said in a report last week.

It stated that “looking ahead, as crude oil production increases, virus restrictions are eased further and the government leans toward loosening fiscal policies, the recovery will likely gain momentum.”

Saudi Arabia’s September forecast for economic growth was 2.6% in this year, and 7.5% in 2022. The projections of 2022 are based on the expectation of higher oil production beginning in May next year, as part of OPEC+, and global demand recovery.