Riyadh – Mubasher: Saudi Arabia’s budget deficit is expected to post a slight increase to SAR 168 billion ($44.8 billion) in 2019, representing 5.5% of the kingdom’s gross domestic product (GDP), according to a new report.

The widened deficit was ascribed to the decrease in the kingdom’s oil revenues to SAR 625 billion this year, lower than the estimated revenues of SAR 662 billion, Jadwa Investment said in its report on the Saudi economy.

Jadwa also forecast the Brent price to register $66 per barrel (pb), and the Saudi oil output to reach 10.3 million barrels per day (bpd) in 2019.

In addition, the kingdom’s non-oil revenues are expected to reach SAR 313 billion, equalling to the estimated revenues in the budget, Jadwa noted.

The GCC nation’s economic growth is projected to reach 2% in 2019, supported by the kingdom's mega spending budget SAR 1.1 trillion, Jadwa’s recent report further added.

Jadwa also expected the Saudi government to issue additional debt instruments worth $8 billion (SAR 30 billion) through international bonds this year, along with its issued $7.5 billion (SAR 28 billion) international bonds earlier in 2019.

Saudi Arabia’s inflation is projected to average about 1.1% in 2019 with the implementation of the value-added tax (VAT) and the fuel price reforms.