Moody’s 3 critical expectations for the performance of the Saudi economy in 2021

Moody’s Agency for Financial Assessment has mapped out three expectations that reflect a strong one performance of the Saudi economy during the year in course, the first of which is the return of the economy to positive growth, a reduction in the public finance deficit and a decrease in the level of debt in the medium term.

The agency’s report, which affirmed the Kingdom’s rating at “A1,” indicated the Kingdom’s merit in the control Its fiscal policies regardless of the rise and fall in oil pricesThe efforts in government course for economic diversification and increasing the size and share of the non-oil private sector in the economy and the government’s commitment to medium-term fiscal reforms, including the fiscal sustainability program framework.

After the agency reviewed the prospects of Saudi Arabia in “stable”, the kingdom’s government was expected to reverse most of its debt increase in 2020, while maintaining financial safety margins.

Before the agency’s report was published, which stated the Kingdom’s rating as “A1”, Alexandre Bergese, Vice President and Senior Analyst at Moody’s Credit Rating Agency, said the estimated spending reduction in the Saudi budget for the years 2022 and 2023 is in in line with the Kingdom’s fiscal budget program, noting that these estimates are positive in fiduciary terms.

He explained that these estimates confirm the Kingdom’s commitment to control spending despite expectations that the government’s revenues will increase thanks to the increase in the price of oil.

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