June 3, 2015

Saudi Arabia's growth to remain unchanged in 2015: IMF

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Wednesday 03 Jun 2015 - 11:23 Makkah mean time-16-8-1436

Saudi oil facility

Riyadh (IINA) – The International Monetary Fund (IMF) projected Saudi Arabia's growth this year at 3.5 percent, unchanged from 2014, but said the pace will slow to 2.7 percent in 2016.
The IMF said the decline in oil prices has resulted in a substantial decrease in revenues, but its impact on the rest of the economy has so far been limited by strong public spending. According to IMF, the Kingdom is forecast to post a budget deficit of 20 percent of gross domestic product (GDP) because of the sharp decline in oil revenues, AFP reported. "Government spending in 2015 is expected to remain strong, partly due to a number of one-off factors, while oil revenues have declined," an IMF team said after visiting the Kingdom.
"As a result, IMF staff projects that the government will run a fiscal deficit of around 20 percent of GDP in 2015," the IMF team added. Oil prices crashed from around $115 a barrel in June last year to just $46 in January before recovering to around $65.
Oil income makes up more than 90 percent of Saudi public revenues. The world's largest exporter is currently pumping 10.3 million barrels of crude per day.
AB/IINA

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