Saudi May Cancel $20B of Government Projects

The video discusses a $20 billion cost-cutting plan aimed at reducing the budget deficit, which was 16% of GDP last year, with a target to balance it by 2020. The plan includes reviewing projects worth $70 billion and potentially cutting ministry spending by a quarter. However, these measures may negatively impact economic growth, with a median expectation of 1.5% growth this year, the slowest in a decade. The private sector, reliant on government spending, could suffer, and without alternative economic drivers, the situation may worsen.

What is the target year for balancing the budget deficit mentioned in the video?

• 2020

• 2025

• 2018

• 2022

Which factor is crucial for achieving budget balance according to the video?

• Foreign investments

• Higher taxes

• Oil price recovery

• Increased government spending

What is the expected economic growth rate for the year discussed in the video?

• 0.5%

• 1.5%

• 2.5%

• 3.0%

How might further spending cuts impact the private sector according to the video?

• Hurt contractors

• Boost economic growth

• Increase government revenue

• Reduce oil dependency

What is a potential downside of the government's spending cuts as mentioned in the video?

• Reduced public services

• Higher unemployment

• Increased inflation

• Lack of alternative economic drivers