Riyad Capital sees Saudi budget deficit at SAR 329 bln in 2016

Saudi Arabia's economy is expected to slow downreach a growth rate of 1.3 percent in 2016, compared to 3.4 percent in 2015, and later rise to 1.6 percent next year on the back of higher oil prices, Riyad Capital said in a report.

The firm expects the kingdom to record a deficit of SAR 329 billion  for this year, while it expects this figure to narrow to SAR 205 billion in 2017.

The country's public debt-to-gross domestic product (GDP) ratio is seen to rise from 5.8 percent in 2015 to 13.6 percent in 2016, the report added.

While growth in the non-oil private sector continued to slow in the earlier part of this year, the economic prospects are seen to gradually improve into the second half of 2016.

In addition, private spending has started to stabilize since the middle of the year,while the balance of payment figures for the first quarter showed improvement in current and financial accounts.

*forecasts