Thank you for reading the news about US job growth far below expectations and now with the details
Jeddah - Yasmine El Tohamy - RIYADH: Saudi Arabia’s sharply narrower first-quarter budget deficit was partly a result of structural improvement in the government’s finances and therefore credit positive, Moody’s Investors Service said.
While much of the decline in the budget deficit was a result of higher oil prices and a seasonal decline in spending, structural factors such as higher VAT and lower capital spending were also responsible Moody’s said in an emailed report. Of particular note was the lowest non-oil fiscal deficit in six years, it said.
Saudi Arabia posted a budget deficit of $2 billion in Q1 2021, down from $29 billion in Q4 2020 and $9 billion in Q1 2020.
“The structural improvement reduces the fiscal exposure to fluctuations in global oil demand and prices,” Moody’s wrote in the report. “If sustained, it will also help reverse part of the fiscal deterioration that took place last year as a result of the coronavirus shock and arrest a further significant deterioration in the government’s balance sheet.”
Moody’s currently rates Saudi Arabia A1, its fifth highest investment grade, with a negative outlook.
Moody’s predicts Saudi Arabia’s non-oil economy to grow about 3.4 percent in 2021 after contracting 2.3 percent in 2020.
“Last year’s contraction, triggered by the coronavirus pandemic, derailed the build-up of the non-oil growth momentum evident during 2019 as a result of structural reforms and some initial progress in implementing diversification projects,” Moody’s said.
These were the details of the news US job growth far below expectations for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.
It is also worth noting that the original news has been published and is available at Arab News and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.