Saudi Economy To Grow Quick From Next Year

By Claire Puffer | ECONOMY

Jul 24

A balance sheet that is Strong and Saudi Arabia debt are One of its principal Moody’s expects real GDP to decrease by 4.5% in 2020 and higher fiscal deficits in the coming years that will increase government debt over 35% of GDP from 22.8 per cent at the end of 2019.

The rapid debut of stimulation measures has helped the Saudi financial industry respond to the coronavirus pandemic.

While the government have needed to adapt these temporary inner shortfalls in earnings, the nation’s prognosis for recovery is glowing, supported by the aggressive price of petroleum production and plenty of reservations.

As organisations have realised the consequences of COVID-19, we’ve noticed a consistent lengthening in the anticipated recovery timeline.

Even though a complete financial recovery remains faltering in several nations, a recent poll PwC survey found that 72 per cent of chief financial officers at the Middle East anticipate it’ll take three weeks or longer for companies to return to”business as usual.

Low public debt, a solid credit score and sizeable foreign exchange reserves supplied the Kingdom using a cushion against external shocks, including the decrease in global demand for oil and other commodities.

Long-term investments in health infrastructure in the Kingdom, together with business foundations and demographics, have positioned Saudi Arabia to handle the challenges.

The Saudi government has made some initial progress in its own ambitious and extensive reform strategies to increase fiscal revenue streams as well as the market apart from hydrocarbons.

About the Author

Claire is working as the Editor for Sky Weyr. She tries to provide our readers with the latest Business updates in our world.

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