Low oil prices exert pressure on the economy of Saudi Arabia

Low oil prices exert pressure on the economy of Saudi Arabia

Low oil prices exert pressure on the economy of Saudi Arabia

According to Bloomberg, a major publishing house, the economy of Saudi Arabia is under severe pressure due to low oil prices. In particular, this is evidenced by the decline in consumer spending in February this year compared to February 2015.

Thus, there is a tendency to reduce government spending, which aims to strengthen public finances. This has a negative impact on the economy despite the fact that Saudi Arabia still owns the world's largest foreign exchange reserves.

Analysts predict that the slowdown in 2016 could reach one and a half percent. This figure may be the highest since 2009. At the same time, the representatives of Saudi Arabia have repeatedly emphasized that their country's economy can withstand low oil prices. As for the overall picture of the oil market, despite the rise in prices, which is observed in recent years, they still remain at a low level.


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