IMF: Saudi Arabia may spend all your financial savings in the next 5 years

ABU DHABI, October 23. Saudi Arabia may spend all your financial savings in the next five years because of problems associated with the fall in world oil prices, says the international monetary Fund (IMF).

In a statement the IMF report on the Middle East indicates that the largest economy of the region is expected to receive the results of this year’s budget deficit to amount to 21.6% of GDP, and in 2016 – 19.4% of GDP.

This means that Riyadh will have to seek funds to cover operating costs and, like its oil-producing neighbors in the Persian Gulf, significantly reduce the expenditure side of the budget.

“The fall of the (world) prices (of oil) turned to regional oil exporters significant losses of export earnings that resulted in a disappointing $360 billion this year” – leads the channel the opinion of the Director of IMF’s Middle East Masood Ahmed.

Monetary Agency Saudi Arabia withdrew from foreign investment funds with assets of $70 billion Since the start of the decline in global oil prices, the stocks of the Kingdom in foreign currency decreased by almost $73 billion to $654,5 billion.

The IMF gives forecasts for world oil prices to $52 per barrel at the end of this year and $63 next.

Dynamics of prices for oil since 1990 Dossier