S&P affirms Saudi Arabia’s stable outlook and expects fiscal surpluses by 2024
S&P Global Ratings has affirmed Saudi Arabia’s rating at “A-/A-1” with a stable outlook and said the kingdom would return to fiscal surpluses in 2024 on higher crude production as well as growth in its non-oil economy.
The A-/A-1 rating indicates the obligor's strong capacity to meet its financial commitments.
“Reforms in the past few years, including measures to drive non-oil economic growth and widen the non-oil tax base, alongside significant social liberalisation, should continue to improve Saudi Arabia's economic and fiscal profile,” the rating agency said on Friday.
Saudi Arabia's economy grew by 1.2 per cent in the second quarter of this year, a slightly faster pace than the initial estimates, driven by a sharp expansion in the non-oil sector of the Arab world's biggest economy.
The kingdom’s gross domestic product at current prices reached 970 billion riyals ($258.66 billion) in the three months to the end of June, the General Authority for Statistics said earlier this month.
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