IMF Says Saudi Arabia Could Be Broke By 2020 — But Why?, Saudi Arabia has been synonymous with excessive wealth for decades. However, if the International Monetary Fund (IMF) is to be believed, that’s about to come to a screeching halt.
According to the Daily Mail, the kingdom is expecting a “budget deficit of more than 20 percent of gross domestic product this year,” estimated to be anywhere from “$100 billion to $150 billion.” Within five years, the IMF predicts that Saudi Arabia could completely deplete its financial assets.
So how did the Middle Eastern nation reach this point? Well, much of the impending financial crisis can be blamed on a couple of key factors. First would be slumping oil prices. Al Jazeera reports an explanation of the grim situation came when IMF’s Middle East director, Masood Ahmed, spoke to reporters in Dubai.Saudi Arabia has been synonymous with excessive wealth for decades. However, if the International Monetary Fund (IMF) is to be believed, that’s about to come to a screeching halt.
According to the Daily Mail, the kingdom is expecting a “budget deficit of more than 20 percent of gross domestic product this year,” estimated to be anywhere from “$100 billion to $150 billion.” Within five years, the IMF predicts that Saudi Arabia could completely deplete its financial assets.
So how did the Middle Eastern nation reach this point? Well, much of the impending financial crisis can be blamed on a couple of key factors. First would be slumping oil prices. Al Jazeera reports an explanation of the grim situation came when IMF’s Middle East director, Masood Ahmed, spoke to reporters in Dubai.
Five years may seem like a long time, but it often takes as many years — if not longer — to effectively implement relevant policy and spending changes. IMF officials are concerned that Saudi Arabia’s short-term plans for coping with their financial situation will not aid them in the long-term.
It’s not a “kick the can down the road” type of situation: If Saudi Arabia doesn’t heed the IMF’s warning, a nation once known for its “ceaseless wealth” could be become as barren as the desert it sits on within our lifetimes.
According to the Daily Mail, the kingdom is expecting a “budget deficit of more than 20 percent of gross domestic product this year,” estimated to be anywhere from “$100 billion to $150 billion.” Within five years, the IMF predicts that Saudi Arabia could completely deplete its financial assets.So how did the Middle Eastern nation reach this point? Well, much of the impending financial crisis can be blamed on a couple of key factors. First would be slumping oil prices. Al Jazeera reports an explanation of the grim situation came when IMF’s Middle East director, Masood Ahmed, spoke to reporters in Dubai.Saudi Arabia has been synonymous with excessive wealth for decades. However, if the International Monetary Fund (IMF) is to be believed, that’s about to come to a screeching halt.
According to the Daily Mail, the kingdom is expecting a “budget deficit of more than 20 percent of gross domestic product this year,” estimated to be anywhere from “$100 billion to $150 billion.” Within five years, the IMF predicts that Saudi Arabia could completely deplete its financial assets.
So how did the Middle Eastern nation reach this point? Well, much of the impending financial crisis can be blamed on a couple of key factors. First would be slumping oil prices. Al Jazeera reports an explanation of the grim situation came when IMF’s Middle East director, Masood Ahmed, spoke to reporters in Dubai.
Five years may seem like a long time, but it often takes as many years — if not longer — to effectively implement relevant policy and spending changes. IMF officials are concerned that Saudi Arabia’s short-term plans for coping with their financial situation will not aid them in the long-term.
It’s not a “kick the can down the road” type of situation: If Saudi Arabia doesn’t heed the IMF’s warning, a nation once known for its “ceaseless wealth” could be become as barren as the desert it sits on within our lifetimes.
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