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Thursday, 6 October 2016

Saudi Arabia's Engine of Growth Is Running Out of Gas - Bloomberg

Saudi Arabia's Engine of Growth Is Running Out of Gas - Bloomberg:

"The first year of Saudi Arabia’s drive to reduce its oil dependence may end with the opposite result.
A flurry of cost-cutting measures will likely push the non-oil economy into recession, analysts say. That means that any overall growth in 2016 will be largely due to record crude output.
Efforts to manage the fallout from cheap oil gathered steam over the past two weeks. Policy makers have suspended bonuses and trimmed allowances for government employees. Ministers’ salaries were cut by 20 percent. The central bank also said it’s injecting about 20 billion riyals ($5.3 billion) into the banking system to ease a cash crunch."



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