“Saudi Arabia is running large budget deficits of 15 to 20 percent of GDP, and is drawing down on its currency reserves,” said Savage, who’s a political science professor at the University of Virginia and teaches public policy in the Department of Politics and at the Frank Batten School of Leadership and Public Policy.
He added that the IMF estimates the Saudis “will run of cash reserves in five years, and will then go deeply into debt.” Last month, the Standard & Poor’s rating agency downgraded Saudi Arabia saying falling crude prices continue to hit the Kingdom’s finances. Riyadh is facing a huge budget deficit which is expected to reach $87 billion this year. The crude price crisis has had a huge impact on the economy as oil sales account for almost 80 percent of the country’s revenue. Saudi Arabia’s foreign reserves fell to $640 billion last year from $737 billion in 2014.
-more at RT