Saudi Arabia to push ahead with investments despite widening deficit

Riyadh

SAUDI authorities pledged to curb wages and push ahead with investments next year as the world's largest oil exporter seeks to counter the effect of tumbling crude prices on the economy.

The government said that it expects the budget deficit in 2015 to widen to 145 billion riyals (S$51 billion), from 54 billion riyals this year, the Finance Ministry said on Friday. That amounts to about 5 per cent of gross domestic product, according to Arqaam Capital, a Dubai-based investment bank.