According to Fitch Rating, the strong sovereign balance sheet and sizable State Oil Fund provide a significant cushion against the decline in oil prices, Reuters reported.
Despite lower oil revenues, the goverment's policy response is expected to be relatively modest, so that growth will continue to benefit from fiscal support in the form of high public capital expenditure.
However, a prolonged period of low oil prices could ultimately result in significant reductions in budget spending, which has been the major growth driver for the non-oil economy and supported bank lending and asset quality to date.
“
Follow us on Telegram
t.me/apanewsaz
Follow us on Instagram
Follow us on TikTok
Follow us on Facebook
Follow us on X
