[1/4/17] Saudi Arabia has forecast its revenue from crude oil will significantly rise in 2017, as prices show a positive trend after the deal between OPEC, Russia and other producers to cut output.
Riyadh expects to collect 480 billion riyals ($128 billion) from crude sales in 2017, up from an estimated 329 billion riyals in 2016.
“As the kingdom’s economy is strongly connected to oil, the decrease in oil prices over the past two years has led to a significant deficit in the government’s budget and has impacted the kingdom’s credit rating,” the Saudi government said in a statement.
“The 2017 budget was prepared in light of developments in the local and global economy, including the estimated price of oil,” it added.
Saudi Arabia saw a record $98 billion budget deficit in 2015, or 15 percent of GDP, and was struggling to cut the gap in 2016.