Saudi Arabia to face "sharp" spending cuts on lower oil prices | ZAWYA MENA Edition:
Saudi Arabia’s government budget is expected to face substantial pressure as oil prices drop sharply, a report produced by ICAEW in partnership with Oxford Economics said.
Despite an estimated 8 percent cut to expenditure, the public finance deficit is forecast to widen to 8.6 percent of GDP this year, which could undermine recent progress on the kingdom’s diversification agenda that is financed through public spending, ICAEW said.
The report titled “Economic Update: Middle East Q1 2020” expects oil prices to average below $40 per barrel in 2020.
Brent Crude oil prices were trading near the $23 per barrel level at the end of March, down from the $51 per barrel level recorded at the beginning of the month.
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