IMF cuts Saudi Arabia’s growth forecast on lower oil output

The International Monetary Fund (IMF) on Monday lowered its growth outlook for Saudi Arabia on back of lower oil production and capital spending.

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The International Monetary Fund (IMF) on Monday lowered its growth outlook for Saudi Arabia on back of lower oil production and capital spending.

In its World Economic Outlook report update, the IMF said gross domestic product (GDP) will expand 0.4 per cent in 2017. It compares with the fund’s October prediction of 2 percent growth in the October 2016 report.

In December 2016, the Saudi government said growth slowed to 1.4 percent in 2016, below the average of 4 percent in the past decade.

The Ministry of Finance said the government posted a deficit of $79.02 billion (SR297 billion) for 2016, 9 percent lower than its initial estimate year and expects the deficit to shrink to $52.80bn (SR198bn), or 7.7 per cent of GDP. The government is targeting to post a “balanced” budget by 2020. More info

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