Wednesday, 24 December 2008
Saudi Arabia moves into deficit
BMI has just produced a piece of research downgrading Saudi Arabian growth. As can be ssen, government spending is taking a dive into fiscal deficit(of 1.2% of GDP). This is the first time since 2002 and will force the country to forcing it to use the sovereign wealth fund or build up public debt to match the gap. Still, most ountries would die for problems like that right now. The economy is still growing and should weather the storm.