Al Rajhi Capital expected the increase in oil prices, exports and revenues to lower the deficit by 28 percent in 2018.
The research firm forecasted oil revenues to reach SAR 134 billion in the second quarter of the year and SAR 547.5 billion for 2018, 11.3 percent higher than budget target of SAR 492 billion.
“We continue to believe that higher oil output amid firm oil prices, along with improving non-oil sector will ensure a sustainable economic recovery in 2018, Al Rajhi Capital said.
Saudi Arabia has reported budget deficit of SAR 34.3 billion in Q1 2018, representing about 18 percent of the expected annual deficit.
Oil revenue hit SAR 113.95 billion, a rise of 2 percent YoY. Non-oil revenue surged 63 percent YoY to SAR 52.32 billion in Q1 2018.
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