Austerity measures had to be implemented by the government to weather the side effects of the price war after it sank Brent crude from $112 per barrel in June 2014 to just $48 in January 2015. For the first quarter of the year, the kingdom booked a budget shortfall that was greater than half its forecast deficit for the full year, at $15.6 billion. Goldman Sachs economist Farouk Soussa earlier this year told Bloomberg that if Brent averages about $62 per barrel this year (which is now the base-case of most investment banks), Saudi Arabia’s deficit could soar to $67 billion for the full-year 2025, more than double the Kingdom’s budget plan of a deficit of $27 billion.
Author: Irina Slav
Published at: 2025-05-11 21:00:00
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