Saudi Arabia External Balances Weaken on Oil Drop, IMF Says
- IMF sees Saudi current account falling into deficit this year
- Oil’s fall hits government’s ability to fund Vision 2030 plans
Storage tanks and oil processing facilities at an oil refinery and terminal in Ras Tanura, Saudi Arabia.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
Saudi Arabia’s current account balance is set to flip into deficit as oil prices decline and imports related to huge projects meant to transform the economy rise, the International Monetary Fund said.
The kingdom will probably see a deficit of 0.1% of gross domestic product this year and 1.1% in 2025, according to the Washington-based lender’s so-called Article IV review of the Saudi economy. The IMF expects an average shortfall of 2.9% from 2026-2029.