The Covid-19 pandemic has blown a hole in Saudi Arabia’s 2020 budget plans, and the impact is already being keenly felt. The kingdom had planned to run up a substantial deficit for the year even prior to the pandemic, as it sought to kickstart economic growth, and this is now liable to push towards $100bn (MEES, 13 December 2019).
This week’s release of Q1 revenue and spending data from the Ministry of Finance is an important barometer of the kingdom’s 2020 economy. And the initial readings highlight the extent of the troubles facing Riyadh. The figures show a first quarter deficit of $9.1bn, a drastic reversal from the – admittedly anomalous - $7.4bn surplus racked up in 1Q 2019 when the kingdom’s finances benefitted from a combination of stable revenue and low spending (MEES, 3 May 2019). (CONTINUED - 714 WORDS)
