Saudi Arabia is Projected to be Bankrupt in 5 Years – IMF
By Jay Syrmopoulos on October 23, 2015
Dubai, UAE – Strategic U.S. ally, Saudi Arabia, which is the Middle East’s largest economy, is projected to be bankrupt within the next five years if the Saudi regime maintains its current policies and expenditures, according to the International Monetary Fund (IMF).
According to the IMF’s latest region report, Saudi Arabia is expected to run a budget deficit of 21.6 percent in 2015 and 19.4 percent in 2016, with the IMF urging the Saudi government to adjust their fiscal policy.
Two of the main factors behind the grim forecast are the deepening of current regional conflicts and the depressed price of oil. With the extreme refugee crisis being precipitated by the Syrian conflict, continuing large numbers of refugees are expected to strain the ability of the region to create new fiscal opportunities.
The conflicts have given rise to large numbers of displaced people and refugees, on a scale not seen since the early 1990s, according to the report. The irony in this situation is that Saudi Arabia has been one of the largest suppliers of weapons and ammunition to the forces attempting to overthrow Syrian President Bashar Assad, thus precipitating the massive refugee crisis.
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