Saudi Arabia Scales Back Austerity Measures

摘要

Saudi Arabia has reinstated benefits for civil servants and military staff despite continued pressure on the country's budget due to low oil prices. The move appears to be an attempt by the kingdom's leaders to ease pressure from the unpopular economic reforms, but may also signal Saudi confidence in the oil price in the near-term. Analysts at Stifel & Co. called the action a “powerful catalyst” and said it “further supports the likelihood of an extension of Opec cuts into the second half of 2017."