Saudi Arabia’s government deficit increased by 43% to a four-year high of $30.8bn last year, bringing the cumulative deficit over the past ten years to $454.6bn. During this period, the government has only recorded a surplus once, in 2022 when energy prices spiked amid concerns over the impact of the Ukraine conflict.
Riyadh financed 2024’s deficit through borrowing, but despite government debt rising to $324bn, it still only accounts for a relatively modest 29.7% of GDP. With the government budgeting for a $26.9bn deficit this year, debt is forecast to increase to $347bn. But, with economic growth projected at a buoyant 4.6% (MEES, 31 January), this means the debt-to-GDP ratio is set to only edge up to 29.9% (see chart 1). (CONTINUED - 698 WORDS)
