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Thursday, 4 May 2017

Saudi Arabia avoids financial crisis - now for the hard part | Reuters

Saudi Arabia avoids financial crisis - now for the hard part | Reuters:

"Saudi Arabia has dodged a financial crisis due to low oil prices by slashing state spending and borrowing tens of billions of dollars abroad, but now it faces a tougher challenge: getting the economy growing again. In a series of interviews with Reuters reporters last week, senior Saudi officials said reforms announced on national television by Deputy Crown Prince Mohammed bin Salman a year ago had stabilised state finances enough for the government to begin focusing on investing in the economy. Spending cuts are shrinking a $98 billion budget deficit that was created by oil's plunge. Foreign investors are eagerly buying Saudi bonds, and the government has begun to shake up its bureaucracy and simplify regulation, promising efficiency gains."



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