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FINANCIAL NEWS
Forecasts set Saudi deficit at 16 percent in 2015
01 Nov 2015
(MENAFN) Saudi Arabia’s credit rating was cut by Standard & Poor’s, mainly driven by the drop in oil prices which will further upsurge the budget deficit.
S&P stated that the largest OPEC producer’s deficit will grow to 16 percent of gross domestic product this year, plus the nation’s credit outlook is negative.
In particular, the prices decline will particularly hurt the kingdom considering the fact that the country depends on energy exports for 80 percent of its income.
‘The widening deficit and a high reliance on energy revenue point to weaknesses in kingdom’s public finances,’ said a money manager at Newfleet in Hartford, Connecticut.
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