Saudi Arabia Reports $8 Billion Q3 Budget Deficit Amid Lower Oil Prices

KSA, 5 November, 2024 : Saudi Arabia recorded a budget deficit of 30 billion riyals ($8 billion) in the third quarter, as lower oil prices impacted revenue, according to a finance ministry statement released on Monday. Total spending for the quarter reached 339 billion riyals, reflecting ongoing investment in the Vision 2030 transformation program, which aims to diversify the economy away from oil dependence.

The kingdom's total revenue was 309 billion riyals, comprised of 191 billion riyals from oil and 118 billion riyals from non-oil sources. Despite accelerating efforts to boost non-oil growth, oil remains a crucial component of the economy, and government earnings have declined due to lower oil prices and production levels.

Finance Minister Mohammed Al Jadaan indicated that the government is reviewing its spending plans, which may result in delays or scaling back of some Vision 2030 projects while prioritizing others. A recent Reuters poll forecasts a 1.3% growth for the Saudi economy this year, slightly below the International Monetary Fund's revised estimate of 1.5%, making it one of the slowest in the Gulf Cooperation Council.

Looking ahead, oil output is expected to increase next year, potentially leading to an overall rebound in economic growth. Currently, the non-oil sector contributes more than 50% to the GDP and is estimated to grow at around 4% this year, despite some signs of softening.

Source : www.zawya.com