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International Monetary expected decline in the international economy
10/13/2015 0:00
Washington agencies
International Monetary Fund cut its forecast for the growth of the international economy for the third time this year, as the decline in commodity prices has been promised a major reason behind the weakness in the international economy.
The Fund has cut growth forecasts for 2015 to 3.1 percent, as the bank's growth is expected to fall in the international economy for 2016 to 3.6 percent compared with the much higher had announced in advance.
The Fund pointed out in his report for the month of October of this, that the biggest reduction in expectations was the share of Africa, and particularly sub-Saharan Africa, due to lower commodity prices significantly .
for the Middle East and North Africa, has shown its forecast slight growth, but for the oil states is expected the International Monetary Fund a difficult situation on the financial levels, monetary and financial policies, but on the other hand, oil-importing likely see a recovery and improvement countries.
For the Gulf states, the International Monetary Fund cut growth in Kuwait expectations by 60 basis points to 1.2% during the current year, while the expectations of the Saudi economy has also declined by 60 basis points to fall to 3.4% this year and was cut growth forecast for 2016 from 2.8% to 2.2% .
Similarly, the International Monetary Fund said that Saudi Arabia could see a deficit, it has seen a sharp decline in the trade balance to reach single-figure levels, with expectations that Saudi Arabia is experiencing a sharp deficit in the budget because of lower oil prices, and is expected to be a deficit of 21.6% of GDP GDP compared to the 3.4% level in 2014.
For the total deficit, expected a deficit of $ 2.3 trillion Saudi riyals over the next five years, and this number is very large surplus over the past ten years of $ 1.9 trillion SR. The Fund expects that the ratio of debt to GDP up to 6.7% in 2016 compared to 1.6% in 2014.
Despite all this, however, concerns in revenue punctuated by optimism under foreign cash reserve stocks and surpluses that have been collected over the past few years When oil prices rose.
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