Wednesday 19 August 2015

Riyadh needs multi-year fiscal adjustments — IMF | GulfNews.com

Riyadh needs multi-year fiscal adjustments — IMF | GulfNews.com:



"The International Monetary Fund (IMF) has urged Saudi Arabia, which derives 90 per cent of its revenues from oil and gas, to undertake a “multi-year fiscal adjustment” to fight another round of correction in crude oil prices.



Brent crude has shed more than half of its value in the past one year, making the budgets of the GCC states more vulnerable, and the IMF feels this has increased the importance of structural reforms to switch the focus of growth to the private sector.



Over the medium term, due to continued expenditure growth, Saudi Arabia could witness a very large fiscal deficit this year and over the medium term, eroding the country’s fiscal buffers."



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