The International Monetary Fund projects Saudi Arabia to swing to a fiscal deficit of 1.2% of GDP in 2023, from a surplus of 2.5% in 2022, it said in its latest assessment report on Wednesday.
The Saudi government has forecast a second consecutive budget surplus for this year, albeit narrower than in 2022.
Saudi Arabia’s economy grew 8.7% last year on the back of high oil prices, allowing it to record its first budget surplus in almost a decade.
But cuts to production this year and lower prices are expected to hit oil revenues and weigh on growth.—Zawya
