It reduced the expectations of the contraction of the national economy and the general deficit in the budget
As a candidate for declining GDP and the general deficit in the Saudi budget, the international credit rating agency, Standard & Poor's, revealed yesterday that the strength of the Saudi economy has strengthened the credit rating of Saudi Arabia, despite the current circumstances, at A- / A-2 with a stable outlook. This is due to the strong position of Saudi assets.
In a statement, Standard & Poor’s confirmed that the strong net assets position of the Kingdom represents an essential support in the classification of the national economy, indicating at the same time that this pushed to reduce its assessment of the Saudi economic contraction during the current year from 5 to 4.5 per cent. .
According to “Standard & Poor’s”, the recent conditions of the Saudi economy have strengthened the reduction of its expectations about the percentage of the deficit in the government budget for the current year from 12.6 percent to 11 percent of GDP.
According to the latest statistics of the Saudi Arabian Monetary Agency (SAMA), the size of the Kingdom’s reserve assets at the end of last July was about 1.68 trillion riyals, compared to 1.678 trillion riyals at the end of the previous June, up 0.1 percent, equivalent to 2.1 billion riyals. . The total reserve assets of SAMA include gold, special drawing rights, reserves with the International Monetary Fund, foreign exchange and deposits abroad, in addition to investments in securities abroad.
The total assets of the Saudi Arabian Monetary Agency (the central bank of the Kingdom) amounted to 1.81 billion riyals (483 billion dollars) until last July, registering a growth since the economic closure of the country to combat the emerging Corona virus last March.
On the other hand, Saudi Arabia has an ambitious sovereign fund that is among the largest in the world, as it is ranked eighth among state funds. The latest data revealed that the assets of the Public Investment Fund jumped 8 percent ($ 30 billion) at the latest rating, bringing total assets to 1.46 trillion riyals ($ 390 billion) currently, up from the last assessment of the fund’s asset size, which was $ 360 billion in August. (August) the past.
This classification coincides with government statements about planning currently underway to stimulate business and investment sectors in the national economy, as Minister of Trade Dr. Majed Al-Qasabi said last week that the Kingdom is evaluating all options to revitalize its economy, after it took painful measures to compensate for the significant decline in oil revenues resulting from the restrictions it imposed to limit From the spread of the Corona virus. According to Al-Qasabi; “The kingdom will take measures to stimulate the economy and ensure steady growth.”
The International Monetary Fund had expected, during the Corona crisis, that the Saudi economy would shrink by 6.8 percent this year, at a time when officials confirmed; Among them are Saudi Finance Minister Muhammad Al-Jadaan and Dr. Ahmed Al-Khulaifi, Governor of the Monetary Agency, during sporadic statements in the last period, that the Kingdom will witness a decline less severe than the Fund’s expectations.
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