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International Monetary Saudi Arabia is expected to lose "all their reserves," Finance in 5 years
10/24/2015 9:53
Baghdad - INA / IMF expects the Saudi spending all financial reserves during the past 5 next, and in light of falling oil prices by more than half since the middle of last year.
The International Monetary Fund in its report on the Middle East published on Friday, that the deficit Budget has the largest economy in the region is expected to reach this year 21.6% of the GDP of the Kingdom, and 19.4% next year.
The UK recorded another deficit in 2009, when oil prices fell for a short period due to the global financial crisis.
The report paints a pessimistic picture of the financial pressure on Riyadh, oil revenues that make up about 90% of its revenues, where Riyadh would be forced to seek financial resources to support spending. Like its neighbors exporters of oil in the Gulf Kingdom will work to cut costs in its budget.
Said Masood Ahmed Director, Middle East and Central Asia Department at the International Monetary Fund, "The drop in crude prices cost the oil exporters in the region, huge amounts of money, which amounted to about $ 360 billion in the last year.
"He pointed Ahmed earlier that Saudi Arabia needs to make major fiscal adjustment and structural last several years.
It has also Saudi Arabia to withdraw about $ 70 billion over the last six months of their investments all over the world, and in order to bridge the budget deficit. In addition to the decline in financial reserves by about $ 73 billion with the start of the decline in crude oil prices, which have fallen since the month of June 2014 by about 60% after the high global production began to collide with a slowdown in global economic growth, to reach 654.5 billion dollars, after the sovereign wealth fund of the Kingdom recorded the highest level in August / August 2014, reaching $ 737 billion.
These reserves are not final and in the case of the survival of the black gold rates at low levels for a long time will face Saudi Arabia in the long term economic and social challenges.
According to International Monetary Fund estimates that oil prices will reach the level of 52 dollars per barrel by the end of this year, and $ 63 in the next years
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