Saudi Arabia’s budget deficit rises strongly in the third quarter

The Saudi budget deficit increased during the third quarter of this year to 9.5 billion dollars in the three months ended in September, after the budget recorded a deficit of 1.41 billion dollars in the second quarter, according to Bloomberg, citing a report by Saudi Arabia’s Ministry of Finance.

“Although expenses decreased by 8% to about $78 billion, revenues decreased by about 18% to $69 billion, as a result of lower revenues from crude oil and taxes,” according to Saudi Arabia’s Ministry of Finance report.

Saudi Arabia’s Ministry of Finance report showed a decrease in oil revenues by about 18% to 147 billion riyals during the period from July to September, and income from non-oil products decreased by 17% to 112 billion riyals.

“Saudi Arabia’s economy of 1.1 trillion dollars suffered its largest contraction since 2020 during the third quarter, after the kingdom cut oil production last July in an attempt to raise prices,” according to “Bloomberg.”

“Saudi Arabia needed to sell crude oil at a price higher than 86 dollars in the third quarter to balance the budget, and Bloomberg Economics estimates that Saudi Arabia needs to sell oil at the level of 91 dollars per barrel to avoid a budget deficit in the second half of the year,” Bloomberg added.