According to the International Monetary Fund, Saudi Arabia’s GDP will shrink by 0.5% in 2021.
The International Monetary Fund (IMF) has said that Saudi Arabia’s GDP is projected to fall by 0.5% in 2021, according to SP Global Plate. The country’s GDP shrank by 6.7 percent in 2020 due to a decline in OPEC Plus production.
The International Monetary Fund (IMF) said in a report that Saudi Arabia’s gross domestic product (GDP) is expected to grow by 6.8% in 2022, following the end of the OPEC Plus production cut.
OPEC and its allies have agreed to increase oil production from May. The group will increase production by two million barrels per day by July.
Saudi Arabia needs $ 76.20 a barrel to balance its budget in 2021. The figure was $ 77.90 in 2020 and is expected to drop to $ 65.70 in 2022.
The goal of the Saudi budget in 2021 is to reduce its annual deficit. Saudi Arabia’s budget deficit increased from 4.5 percent of GDP in 2019 to 11.3 percent in 2020, as a result of declining oil revenues and rising spending. According to the International Monetary Fund, Saudi Arabia has covered the budget deficit with new loans and withdrawals from government reserves.
The fund predicts that Saudi Arabia’s budget deficit will fall to 4.2 percent of GDP this year, slightly lower than the budget forecast.