IMF: Even if oil prices fall, Saudi Arabia has already cut enough spending.

Jin10 Data, August 4 - The IMF stated that Saudi Arabia has cut enough spending this year that further fiscal adjustments may not be necessary even if oil prices weaken. Saudi Arabia indicated at the end of 2024 that it will reduce spending to 1.285 trillion riyals ($342 billion) in 2025, as the country's spending had previously exceeded targets to push forward its economic diversification plans. The IMF's envoy to Saudi Arabia, Amin Mati, noted that while the Saudi government has reduced expenditures, spending may still be above budget, with some one-time expenditures continuing. It is expected that Saudi Arabia's fiscal deficit will rise to 4% this year, which is considered "quite appropriate" given the country's ample forex reserves. The Saudi government's own forecast is 2.3%.