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Saudi’s worsening twin deficits reinforce need for austerity

Saudi Arabia’s twin budget and current account deficits have widened on the back of low oil export receipts and this trend is likely to continue over the coming quarters. While the adjustment to low oil prices will not be as harsh as in 2014-16, the government will need to follow through on its pledge of fiscal consolidation in the 2026 Budget or risk a further large rise in the public debt-to-GDP debt ratio.

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