CAIRO, Sept 30 (Reuters) - Saudi Arabia has projected a fiscal deficit equivalent to 3.3% of gross domestic product for 2026, higher than a previous estimate from the 2025 budget that envisaged a 2.9% deficit for next year.
The 2026 deficit is equivalent to 165 billion riyals ($44.00 billion).
The ministry estimated the 2025 deficit at 245 billion riyals ($65.33 billion), or 5.3% of GDP, exceeding the 101 billion riyals projected in the budget published last November.
In the latest pre-budget statement on Tuesday, the finance ministry sees total expenditure for 2026 at 1.31 trillion riyals ($349 billion) and revenue at 1.14 trillion riyals ($304 billion).
Saudi Arabia is undertaking a massive economic overhaul known as Vision 2030, aimed at reducing reliance on oil and developing more sustainable revenue streams, which requires hundreds of billions of dollars in investment.
The ministry forecast real GDP growth of 4.4% in 2025, driven by the growth of non-oil activities, and 4.6% in 2026, also supported by the same factor.
A Reuters poll in July forecast Saudi Arabia’s GDP would grow 3.8% this year, nearly three times the 1.3% growth recorded in 2024, according to a survey of 20 economists conducted July 15-28.
In the latest pre-budget statement on Tuesday, the finance ministry sees total expenditure for 2026 at 1.31 trillion riyals ($349 billion) and revenue at 1.14 trillion riyals ($304 billion).
Saudi Arabia is undertaking a massive economic overhaul known as Vision 2030, aimed at reducing reliance on oil and developing more sustainable revenue streams, which requires hundreds of billions of dollars in investment.
The ministry forecast real GDP growth of 4.4% in 2025, driven by the growth of non-oil activities, and 4.6% in 2026, also supported by the same factor.
A Reuters poll in July forecast Saudi Arabia’s GDP would grow 3.8% this year, nearly three times the 1.3% growth recorded in 2024, according to a survey of 20 economists conducted July 15-28.
In June, the International Monetary Fund raised its 2025 GDP growth forecast for Saudi Arabia to 3.5% from 3%, partly on the back of demand for government-led projects and supported by the OPEC+ group's plan to phase out oil production cuts.
($1 = 3.7501 riyals)
Reporting by Elwelly Elwelly, Jaidaa Taha and Muhammad Al Gebaly, writing by Yomna Ehab; Editing by Alex Richardson
Source: Reuters