The largest Arab economy expects real gross domestic product to grow by 0.03 per cent this year
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Saudi Arabia forecasts slower growth, budget deficit for 2023
Saudi Arabia, the largest Arab economy, has forecasted slower growth and a budget deficit for the year 2023. The country expects its real gross domestic product (GDP) to grow by just 0.03 per cent this year. This prediction highlights the economic challenges that the country is currently facing.
Despite being the world’s largest oil exporter, Saudi Arabia’s economy has been hit hard by the COVID-19 pandemic and the subsequent decline in global oil demand. The country’s reliance on oil revenue has made it vulnerable to fluctuations in the oil market.
To offset the economic impact of the pandemic, Saudi Arabia has taken several measures, including increasing taxes and implementing austerity measures. However, these steps have not been enough to restore the country’s economy to its pre-pandemic levels.
The forecasted budget deficit for 2023 indicates that Saudi Arabia will continue to face financial challenges in the coming years. The country has been running a deficit since 2014, leading to a substantial increase in its national debt.
In conclusion, Saudi Arabia’s forecast of slower growth and a budget deficit for 2023 reflects the economic challenges that the country is currently facing. The decline in global oil demand due to the COVID-19 pandemic has had a significant impact on Saudi Arabia’s economy. Despite taking measures to offset the impact, the country will continue to face financial challenges in the coming years.
Reference: Gulf Business (www.gulfbusiness.com)
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