Saudi Arabia cut its growth forecasts and raised its budget deficit estimates for the fiscal years 2024 to 2026, looking ahead to a period of higher spending and lower projected oil revenues.
The GDP growth projection for 2025 has also been cut from a previous estimate of 5.7% to 4.6%; while the outlook for 2026 has been trimmed from 5.1% to 3.5%.
"It also focuses on transformative spending to promote sustainable economic growth, improve social development, and enhance quality of life."
The Finance Ministry projected a wider budget shortfall of about 2.9% of GDP for 2024, compared with a previous projection of 1.9% for the year.
It predicted deficits of 2.3% and 2.9% in 2025 and 2026, respectively, also wider than previous estimates.
Organizations:
Ministry of Finance, Saudi, Finance Ministry
Locations:
Saudi Arabia, Saudi