Re:Saudi Aramco: The message from the world’s biggest and wi...
by nabla9 on Monday November 04, 2019 @03:44AM
(#21439898)
Saudi Arabia is economic time bomb. They want to sell because they need the money.
Saudis have been running budget deficits 4 - 5 percent of the GDP year after year. Deficit might hit 7 percent this year. Saudi Aramco is a profit machine but the population is now over 30 million and the country if full of unemployment and bullshit jobs.
Cutting spending may not be politically possible because it's buying peace. Official unemployment rate is less than 15% but it's estimated that only less than half of working-age Saudis hold jobs or actively seek work. Foreign exchange funds provide buffers but their net foreign assets are gradually eaten away if oil price don't recover.
Saudis have been running budget deficits 4 - 5 percent of the GDP year after year. Deficit might hit 7 percent this year. Saudi Aramco is a profit machine but the population is now over 30 million and the country if full of unemployment and bullshit jobs.
Cutting spending may not be politically possible because it's buying peace. Official unemployment rate is less than 15% but it's estimated that only less than half of working-age Saudis hold jobs or actively seek work. Foreign exchange funds provide buffers but their net foreign assets are gradually eaten away if oil price don't recover.