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FINANCIAL NEWS
Saudi economic growth to slow down on oil plunge
19 Aug 2015
(MENAFN) According to the International Monetary Fund (IMF), Saudi’s economic growth is projected to slow this year and the next one as the government is set to reduce spending to offset low oil prices.
Saudi Arabia’s gross domestic product (GDP) will grow by 2.8 percent this year and 2.4 percent in 2016, the IMF said in e-mailed statement at the conclusion of its regular country consultation.
The world’s largest oil producer turned to the bond market this year for the first time since 2007 after crude prices fell by more than 50 percent. The IMF expects the Kingdom’s budget deficit at 19.5 percent of GDP.
The significant drop in oil revenues and continued expenditure growth would result in a very large fiscal deficit this year and over the medium term, the IMF directors noted.
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