Saudi Arabia’s authorities deficit elevated by 43% to a four-year excessive of $30.8bn final yr, bringing the cumulative deficit over the previous ten years to $454.6bn. Throughout this era, the federal government has solely recorded a surplus as soon as, in 2022 when vitality costs spiked amid considerations over the affect of the Ukraine battle.
Riyadh financed 2024’s deficit via borrowing, however regardless of authorities debt rising to $324bn, it nonetheless solely accounts for a comparatively modest 29.7% of GDP. With the federal government budgeting for a $26.9bn deficit this yr, debt is forecast to extend to $347bn. However, with financial progress projected at a buoyant 4.6% (MEES, 31 January), this implies the debt-to-GDP ratio is about to solely edge as much as 29.9% (see chart 1). (CONTINUED – 698 WORDS)
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