International Monetary Fund forecast by Saudi Arabia to spend all the financial reserves over the next five years, 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 Friday, that "the budget deficit, the largest economy in the region is expected to reach this year 21.6% of the GDP of the Kingdom, and 19.4% in the next year."
And Saudi Arabia, 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 region Saudi Arabia 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."
Saudi Arabia also has withdrawn about $ 70 billion over the last six months of their investments all over the world, and in order to bridge the budget deficit.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 of record highs the month of August 2014, it reached 737 billion Dolar.anthy
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