Fiscal discipline supports the sustainability of the Saudi economy, Barclays tells Al-Eqtisadiah
RIYADH: Barclays confirmed to Al-Eqtisadiah that fiscal discipline is supporting the Saudi economy, as this year’s budget targets a 2 percent cut in government spending and a reduction in the budget deficit, prompting the bank to strengthen its outlook on the Saudi economy and improve its performance forecasts.
The more positive outlook was driven by the easing of risks that had previously surrounded oil production, which had a positive impact on growth prospects and the sustainability of the Saudi economy in the coming period, according to what the bank confirmed to Al-Eqtisadiah.
The bank’s Middle East and North Africa analyst James Swanston said this revision is supported by a number of positive developments, foremost among them Saudi Arabia’s success in utilizing the East-West pipeline to ensure the continuity of oil flows.
These developments have bolstered confidence in the stability of oil supplies and reduced the scale of the decline in production.
