Saudi Arabia’s economy hit hard by oil price crash

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Among the unemployed Saudis, 63.1 percent belonged to the age group of 20-29 years, the General Authority for Statistics said.  

The collapse in oil prices—to which Saudi Arabia itself contributed when it flooded the market with oil during the worst demand crash in April—has forced the Kingdom to take some very unpopular measures such as tripling the value-added tax (VAT), reducing payouts to poorer households, and discontinuing cost-of-living allowances for state workers. 

Saudi Arabia’s economic outlook for this year remains uncertain amid the pandemic-driven economic slowdown and the collapse in oil prices that led to the Kingdom slashing its oil production as part of the new OPEC+ pact, Ahmed al-Kholifey, governor of the Saudi Arabian Monetary Authority (SAMA), said earlier in September.  

Saudi oil revenues have been plunging year over year since March, while the deficit in the Kingdom’s finances in Q2—the worst quarter for oil in decades—stood at $29 billion because of the continued slump in oil prices and oil demand.

This article was originally published on Oilprice.com