Greying Saudi Arabia could multiply government’s debt burden | GulfNews.com

Greying Saudi Arabia could multiply government’s debt burden | GulfNews.com:

"Saudi Arabia’s growing elderly population could put pressure on public finances and government debt over the next three decades in the absence of government reforms to contain the cost of age-related spending, according to Standard & Poor’s ‘Global Ageing Report 2016: 58 Shades Of Gray’.

S&P has forecast the Saudi Arabian population will expand rapidly from 32 million to 46 million between 2015 and 2050. Over the same period, the proportion of elderly people will rise to 15 per cent of total inhabitants from 3 per cent today.

“Age-related government expenditure on pensions and health care would rise to 14 per cent of GDP by 2050 from 6 per cent today. This could lead to a rapid increase in Saudi Arabia’s net debt ratio to 340 per cent of GDP by 2050 if governments were to take no further policy action,” said S&P Global Ratings analyst Trevor Cullinan."



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