Saudi Arabia heading for a hard recession in 2017

RIYDAH: For the first time since 1999, Saudi Arabia is forecast to fall into an economic recession in 2017 according to a new research by BMI.

The kingdom’s oil sector growth will continue to slow as austerity measures are implemented according to the analysis in the report.

The report predicts that the Saudi economy will contract by 0.2 percent in real terms next year for the first time since 1999. In 2016, the economy has grown by just 0.8 percent.

The forecast comes as the kingdom aims to make significant economic reforms and considerably diversify its oil-reliant economy.

Meanwhile, oil production is expected to decline to meet OPEC targets and the Saudi economy will slump into recession as economic activity falters, the report said.

 Matters have been made worse by for Saudi Arabia by Donald Trump, who during his presidential campaign, repeatedly called for completely blockade of oil imports from Saudi Arabia.