Lux de Veritas
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Saudi Arabia poised to tip into deficit
Saudi Arabia risks falling into a budget deficit next year and may have to tap its reserves, the International Monetary Fund (IMF) has warned.
One sign that Saudi Arabia is in danger of dipping into deficit is its "break-even oil price" – the price oil would need to be for the country to balance its budget. The IMF, in its annual consultation paper released Wednesday, notes that Saudi Arabia's break-even price has risen to $89 a barrel in 2013 from $78 a barrel in 2012.
"This expenditure path and lower oil revenues lead to an overall fiscal deficit in 2015, which is expected to deteriorate further to almost 7.5 percent of (gross domestic product) GDP by 2019," the fund said in the 54-page dossier.





