During next five years, Saudi Arabia will face fast growth of a budget deficit provoked by low oil prices. The information was unveiled by the CNN channel with reference to the International Monetary Fund ( IMF).
The IMF noted that in 2015 the Middle Eastern countries lost 360 billion US dollars due to low prices for hydrocarbon. In the current conditions countries in this region have to reduce spending and use their reserves.
Saudi Arabia, the world’s largest oil producer, needs to sell oil at around 106 US dollars a barrel to balance its budget. However, the IMF’s analysts suppose that oil price of 50 US dollars will lead to a budget deficit in 5 years.
