The head of the International Monetary Fund mission to Saudi Arabia, Amin Mati, revealed that the Saudi budget will benefit from the voluntary production cut that it announced with OPEC Plus, indicating that it will achieve more revenues thanks to the rise in oil prices.
Matti added, according to what was reported by “Bloomberg” agency, that the impact of reducing production on the budget and the external situation is considered positive, indicating that the impact of prices will compensate for the loss that may arise from reducing production.
He stated that Saudi Arabia today has discipline in spending in conjunction with the rise in oil prices, indicating that the pattern of spending in Saudi Arabia today is sustainable and can be financed, in addition to the presence of a large area for non-oil revenues, and it is also looking for reforms to the revenue strategy, as this can help in offset some of the drop in oil prices.
He pointed out that government spending in the Kingdom is now more contained and is expected to decrease in the future, indicating that the price of oil that Saudi Arabia requests for the budget has become lower than it was in the past, expecting the parity price to become lower than that.
This comes after Saudi Arabia and other countries of the OPEC Plus coalition finally announced a sudden voluntary cut in oil production, starting from next May until the end of this year.
In another context, the International Monetary Fund believed in a recent report that China will become the largest engine of global growth during the next five years, and will contribute twice as much as the United States adds.
According to calculations conducted by Bloomberg for the data contained in the Fund's report last week, China's contribution to global GDP growth will be 22.6%, 12.9% for India, and 11.3% for the United States.
These countries are followed by Indonesia, Germany, Turkey and Japan, where each of them contributes a little less than 3.6% of the expected growth volume, and the growth contributions from Brazil, Russia, India and China will be better than the Group of Seven countries.
In all, three-quarters of global growth will come from 20 countries, and more than 50% will come from China, India, America and Indonesia alone.
remarks
Box
International Monetary:
Increase Saudi revenues
Prices will compensate for the cut in production
Having revenue
non-oil
Strategic reforms support revenue
Okaz (Jeddah) @okaz_online