The largest Arab economy expects real gross domestic product to grow by 0.03 percent this year, the document released by the ministry of finance showed, compared with a previous forecast for growth of 3.1 percent.
The document projected a budget deficit of 2 percent of GDP, compared with an earlier projection for a 0.4 percent surplus.
Total revenue is now expected to be 1.180 trillion riyals ($314.64 billion) and government spending is forecast to be 1.262 trillion riyals. An earlier projection put revenue this year at 1.130 trillion riyals and spending at 1.114 trillion riyals.
Saudi Arabia has sharply cut its oil production for what the world’s largest oil exporter says is meant to stabilise the oil market. Oil prices remain below last year’s average of $100 a barrel.
The document also projected the government would post a budget deficit of 1.9 percent of GDP in 2024, 1.6 percent of GDP in 2025 and 2.3 percent of GDP in 2026. It said “limited budget deficits” would continue in the medium term due to expansionary spending policies and conservative revenue estimates.
Real GDP was projected to grow by 4.4 percent in 2024, 5.7 percent in 2025 and 5.1 percent in 2026.
Saudi Arabia’s economy grew 8.7 percent last year on the back of high oil prices, allowing it to record its first budget surplus in almost a decade
