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Saudi budget deficits not a disaster, but spending growth to slow

Saudi Arabia’s fiscal position looks set to swing from surplus to deficit in the near-future. This would by no means be a disaster as the authorities could easily finance budget shortfalls for many years to come. However, it does mean that the government is unlikely to raise spending at the same pace as it has done in recent years, weakening a key driver of the economy over the past decade.


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