Saudi Arabia Deepens Budget Deficit as War Spending Takes Toll

Saudi Arabia's Ministry of Finance has revised its budget deficit forecast upwards to 4.9% of gross domestic product for this year.

This represents a deeper shortfall than previously expected, with a prior forecast having pegged the deficit at 3.3%.

The increase in projected deficit is largely due to stepped-up spending by Riyadh to mitigate the impact of the ongoing regional conflict and advance its economic diversification efforts.

Oil prices have surged, boosting Saudi Arabia's oil income, while record non-oil revenue has also contributed to a slight improvement over last year's fiscal shortfall.