Crashing oil prices and coronavirus lockdowns could lead to unprecedented austerity drive in Saudi Arabia

Saudi Arabia could be on the verge of a major austerity drive, as low oil pricesand coronavirus lockdown measures batter the energy-reliant economy, financial experts have warned.A former International Monetary Fund (IMF) official told Saudi daily Arab Newsthat the country should brace itself for turbulent months to come due to financial problems caused by the coronavirus.This will likely mean fiscal consolidation measures, increases in taxes and a decrease in subsidies, the economist said.”The expenditure challenge can be summed up in the increased cost of the health bill. The current expendi…

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