Saudi Arabia posted a significantly smaller budget deficit in the first quarter than projected, according to reports.
Muhammad Al-Tuwaijri, deputy minister of economy and planning told state-run Ekhbariya TV that the deficit for the first three months of the year was SAR26bn ($6.9 billion) from a projected SAR54bn ($14.39 billion).
This followed a sizeable deficit reduction last year from SAR367bn ($98 billion) in 2015 to SAR297bn ($79 billion) in 2016.
The kingdom has forecast a SAR198bn ($53 billion) deficit this year.
“The trade deficit is expected to drop this year and possibly to record as a surplus due mainly to the decline in imports and the rising value of exports,” Saudi Arabian Monetary Authority governor Ahmed Al-Kholifey also told the broadcaster.
On Saturday, Saudi Arabia’s King Salman made a rare reversal in cuts to financial allowances for civil servants amid signs of improving economic conditions in the kingdom.
© Motivate Publishing. All rights reserved.