Saudi Arabia forecasts budget deficit for 2025

Saudi Arabia Projects Budget Deficit for 2025 Amidst Economic Diversification Efforts

The Saudi Ministry of Finance announced on Monday that the kingdom is projecting a budget deficit of 2.3% of Gross Domestic Product (GDP) for 2025.

This forecast, detailed in the ministry’s preliminary budget statement, anticipates total expenditure of 1.28 trillion Saudi riyals (£278 billion) against total revenues of 1.18 trillion riyals.

Despite the anticipated deficit, the government plans to continue its increased investment in strategic initiatives designed to diversify the Saudi economy and promote sustainable growth. The ministry emphasised the role of non-oil sectors in recent GDP growth, noting strong performance in tourism, entertainment, transport, logistics, and industry.

Looking towards 2024, the ministry expects real GDP growth of 0.8%. This figure underscores the kingdom’s ongoing efforts to reduce its reliance on oil revenue and foster a more dynamic and resilient economy.

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