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Saudi may struggle to sustain loose fiscal stance

Saudi Arabia’s fiscal position has deteriorated over the past few quarters on the back of lower oil prices and production, and officials are increasingly doing all they can to sustain the current loose fiscal stance. But if, as we expect, oil prices fall back in 2024-25, the boost to economic growth from government spending is likely to fade and capital expenditure on the Kingdom’s gigaprojects could fall behind.

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