imf advises saudi not to rush reforms price hikes
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle

to cope with low crude prices

IMF advises Saudi not to rush reforms, price hikes

Themuslimchronicle, themuslimchronicle

Themuslimchronicle, themuslimchronicleIMF advises Saudi not to rush reforms, price hikes

Saudi Arabia's austerity measures have so far included boosting excise taxes on tobacco
Dubai - Muslimchronicle

 

The International Monetary Fund on Thursday advised Saudi Arabia not to rush reforms and price hikes as the oil-rich kingdom looks to overhaul its economy to cope with low crude prices.

While the IMF praised Saudi Arabia's intense reform programme, which aims to boost non-oil revenues and curb government spending, the Washington-based organisation recommended pacing implementation to avoid inflicting too much damage on growth.

"If fiscal consolidation proceeds too rapidly, it would adversely affect growth" and involve large hikes in prices of fuel and power, a new report said.

 

Faced with a sharp decline in oil income following the 2014 price crash, Riyadh has posted budget deficits totalling $200 billion (170.5 billion euros) in the past three years, and is forecast to register a $53-billion shortfall this year.

The kingdom's economy -- the largest in the Arab world -- has also contracted in the first two quarters of the year due to lower crude prices and production.

Authorities have launched a major economic reform programme, dubbed Vision 2030, to reduce dependency on oil and introduced austerity measures.

One of those initiatives is the Fiscal Balance Programme, under which Riyadh aims to restore a budget balance by 2019 and return to surplus the following year.

But an IMF team that visited Riyadh in the summer recommended a more gradual implementation, with the aim of posting a deficit-free budget by 2022.

Saudi Arabia's austerity measures have so far included boosting excise taxes on tobacco and soft drinks, increasing energy and water prices and raising expatriate labour fees, which are charges paid by employers for every foreigner they hire.

A second wave of hikes is expected in 2017, likely targeting gasoline, diesel and electricity prices.

Gross revenue gains from raising fuel and electricity prices are forecast to reach $67.7 billion by 2020, the IMF estimates.

The kingdom also plans to impose, for the first time, a five-percent value-added tax (VAT) at the start of next year -- a timeframe the IMF has said could pose a challenge.

The government is forecast to collect some two to three percent of gross domestic product (GDP) from excise tax and VAT by 2020, about $20 billion (17 billion euros).

Non-oil growth is expected to pick up this year, but overall GDP growth will be close to zero given the decline in oil production.

source: AFP

themuslimchronicle
themuslimchronicle

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

imf advises saudi not to rush reforms price hikes imf advises saudi not to rush reforms price hikes

 



Themuslimchronicle, themuslimchronicle

GMT 12:04 2017 Wednesday ,27 September

Thomas Cook sees tourists return to Turkey and Egypt

GMT 20:15 2017 Friday ,17 March

Attack On Aid Convoy in South Sudan Kills Two

GMT 17:32 2017 Friday ,15 September

At least 33 dead in Nigeria boat capsize

GMT 17:23 2013 Friday ,24 May

Woolwich: Terrorism or political murder?

GMT 17:52 2017 Tuesday ,18 April

Meningitis kills 10 more people in NW Nigeria

GMT 18:08 2017 Tuesday ,17 October

Norway solar firm signs 2.5 bn-euro deal with Iran

GMT 07:43 2018 Monday ,22 January

Macron boosts Merkel ahead of key coalition vote

GMT 05:32 2016 Monday ,18 April

Australian dollar falls amid oil talk breakdown

GMT 04:45 2016 Thursday ,15 December

UAE Ambassador and Chilean Energy Minister discuss

GMT 15:34 2011 Saturday ,19 November

Williams to resume sibling rivalry in exhibition

GMT 13:03 2017 Tuesday ,14 March

Snoop Dogg shoots at Trump in new video

GMT 09:37 2016 Monday ,19 September

Southeast Asian haze crisis killed over 100,000

GMT 08:27 2015 Monday ,19 October

Patriots down Colts in 'Deflategate' rematch

GMT 16:36 2017 Tuesday ,12 September

Quarter of houses in Florida Keys destroyed

GMT 21:22 2016 Thursday ,23 June

Poll: Israelis even on Clinton vs. Trump
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
 
 Themuslimchronicle Facebook,themuslimchronicle facebook  Themuslimchronicle Twitter,themuslimchronicle twitter Themuslimchronicle Rss,themuslimchronicle rss  Themuslimchronicle Youtube,themuslimchronicle youtube  Themuslimchronicle Youtube,themuslimchronicle youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

muslimchronicle muslimchronicle muslimchronicle muslimchronicle
themuslimchronicle themuslimchronicle themuslimchronicle
themuslimchronicle
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
themuslimchronicle, themuslimchronicle, themuslimchronicle