JEDDAH: Saudi Arabia’s national debt is expected to be at SR989 billion ($264 billion), or 31.3 percent of its GDP, in the next fiscal year, according to the Ministry of Finance's budget forecast today.
The debt will jump from 30.2 percent of GDP that is forecasted this year, according to the statement.
Next year the principal repayments on debt will reach SR76 billion, the ministry said, adding that in “the medium-term, public debt levels are projected to remain constant.”
“Through coordination between the Ministry of Finance (MoF) and the National Debt Management Center (NDMC) the annual borrowing plan is being prepared within the framework of a medium-term debt strategy,” the statement said.
The ministry expected Saudi GDP to grow at 7.5 percent in 2022, assuming recovery in economic activities and an improvement in the Kingdom’s balance of trade “in light of positive performance in the first half of 2021.”
“The private sector is projected to grow in 2022 to lead economic growth and job creation,” it added.
The government strives to control budget deficit which is projected to be approximately 1.6 percent of the GDP in 2022.