Official and International Data Monitor a Saudi Economic Contraction of 3 3 and the Widening of the Financial Deficit Gap in the Budget

Economic data and estimates issued by international financial institutions and official bodies showed that the Saudi economy faces a package of structural challenges and accumulated financial pressures.
Follow-ups — Al-Khabar Al-Yemeni:
Recent economic reports reveal a remarkable shift in the trajectory of real gross domestic product growth, in conjunction with the repercussions of the regional geopolitical environment and the cost of military confrontations and their direct reflections on the energy and public spending sectors. The international economic assessment tracks recorded fundamental amendments; where the World Economic Outlook report issued by the International Monetary Fund indicated expectations of a contraction of the Saudi economy by a rate ranging around 3.3%.
These estimates come as a reflection of the dual pressures resulting from the fluctuation of energy supplies and regional trade movement, along with the cost of securing vital facilities and supply chains. This shift represents a direct challenge to the major development assumptions, especially in light of the linking of public revenues to the tests of production and export efficiency amid unstable regional conditions.
On the financial and monetary level, the general budget data showed a remarkable widening in the financial deficit gap; where the preliminary estimates of the budget indicate that the expected deficit exceeds its previous ceilings to reach about 245 billion riyals.
In an attempt to absorb this decline in revenues, the government continued to rely on tax policy tools, such as maintaining the value-added tax at its high levels (15%),which cast its heavy shadows on the operating costs of the private sector and the purchasing power of local markets, amid repeated demands from economic circles to re-engineer the priorities of sovereign and development spending.
The current financial pressures impose a complex reality on the pace of financing major projects and economic diversification programs. The disparity between