DUBAI: Saudi Arabia expects its state budget deficit to widen to 187 billion riyals ($49.86bn) next year, or 6.5 per cent of gross domestic product (GDP) from a projected 131bn riyals for this year, the finance minister said on Thursday.

The world’s largest oil exporter expects revenues of 833bn riyals for 2020, down from 917bn riyals projected for 2019, Mohammed al-Jadaan told a news briefing.

Spending is expected at 1.02 trillion riyals for 2020 versus 1.048tr projected in 2019, the minister said ahead of the final budget announcement later this year.

Saudi Arabia had recently restrained crude production by more than called for by an Opec-led supply deal to support oil markets. But concern about slowing oil demand and the weakening global economy have kept prices under pressure.

Public debt in 2020 is expected to rise to 26pc of GDP at 754bn riyals versus 678bn projected for 2019, Jadaan said.

Real GDP growth is expected at 2.3pc next year compared with a projected 0.9pc in 2019, he added.

The International Monetary Fund said in its World Economic Outlook report published earlier this month that it expected Saudi Arabia’s economy to grow 0.2pc this year due largely to oil output cuts.

The Saudi economy, the largest in the Arab world, has suffered in recent years because of low oil prices and austerity measures aimed at reducing a huge budget deficit.

Published in Dawn, November 1st, 2019