Saudi Arabia poised to tip into deficit

Saudi Arabia poised to tip into deficit:



"Saudi Arabia risks falling into a budget deficit next year and may have to tap its reserves, the International Monetary Fund (IMF) has warned.



One sign that Saudi Arabia is in danger of dipping into deficit is its "break-even oil price" – the price oil would need to be for the country to balance its budget. The IMF, in its annual consultation paper released Wednesday, notes that Saudi Arabia's break-even price has risen to $89 a barrel in 2013 from $78 a barrel in 2012.



It would be the first time since 2010 that the Middle East's largest economy records a deficit for its government finances. Apart from domestic expenditures such as ambitious infrastructure outlays, pressure on government finances is also coming from substantial aid pledges to countries across the Arab World."



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