UPDATE 1-Saudi expects wider 2020 budget deficit of $50 billion - fin min

Saudi Arabia expects its state budget deficit to widen to 187 billion riyals ($49.86 billion) next year, or 6.5% of gross domestic product (GDP)from a projected 131 billion riyals for this year, the finance minister said on Thursday.

The world's largest oil exporter expects revenues of 833 billion riyals for 2020, down from 917 billion riyals projected for 2019, Mohammed al-Jadaan told a news briefing. Spending is expected at 1.02 trillion riyals for 2020 versus 1.048 trillion projected in 2019, the minister said ahead of the final budget announcement later this year.

Saudi Arabia had recently restrained crude production by more than called for by an OPEC-led supply deal to support oil markets. But concern about slowing oil demand and the weakening global economy have kept prices under pressure. Public debt in 2020 is expected to rise to 26% of GDP at 754 billion riyals versus 678 billion projected for 2019, Jadaan said.

Real GDP growth is expected at 2.3% next year compared with a projected 0.9% in 2019, he added. The International Monetary Fund said in its World Economic Outlook report published earlier this month that it expected Saudi Arabia's economy to grow 0.2% this year due largely to oil output cuts.

The Saudi economy, the largest in the Arab world, has suffered in recent years because of low oil prices and austerity measures aimed at reducing a huge budget deficit.

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