Saudi Arabia’s Economy Shrinks by 7 Percent in Q2 2020
- Date: 07-Oct-2020
- Source: Al Bawaba
- Sector:Economy
- Country:Saudi Arabia
Saudi Arabia’s Economy Shrinks by 7 Percent in Q2 2020
Based on an real GDP growth assumption of -3.8% in 2020 and +3.2% in 2021-signalling a shallower recession but a modest recovery-the fiscal deficit is targeted to decline from an expected $79.5 billion (12.0% of GDP) this year to $38.7 billion (5.1% of GDP) in 2021, said the Mitsubishi UFJ Financial Group (MUFG), a Japanese bank holding and financial services company, in its latest Mena Economic Weekly report.
Saudi Arabia's pre-budget 2021 released by the Ministry of Finance (MoF) on 30 September has struck a pragmatic balance between two competing objectives -fiscal prudence in accordance to its medium-term balanced budget by its terminal date of 2023 on the one hand, and enhancing real GDP growth on the other hand.
For the projections of the MoF's spending side of the fiscal equation to