Saudi Arabia has rewritten its budget forecast for next year, saying it expects a deficit instead of a surplus as it ramps up spending and tackles uncertainty in oil markets.
The Finance Ministry also revised its previous forecast of surpluses every year until 2025, now expecting deficits until at least 2026, according to a preliminary budget statement published Saturday.
The $1.1 trillion economy will narrowly avoid a contraction this year, according to Finance Ministry forecasts. By contrast, Bloomberg Economics expects the Saudi government’s oil supply cuts to shrink the economy by about 0.7% this year, a major swing from being the fastest-growing Group-of-20 nation in 2022.
Under Crown Prince Mohammed bin Salman, the country’s de facto ruler, Saudi Arabia is pushing to diversify its oil-dependent economy, building up new domestic industries including electric car-making, tourism and logistics. But the plans are hugely expensive, putting strain on government finances.
No comments:
Post a Comment