DUBAI- Saudi Arabia's government expects inflation to reach 3.7% in 2020, partially due to an increase in its value-added tax rate, it said in a preliminary budget statement on Wednesday. The government expects inflation to hit 2.9% in 2021, the document showed.

(Reporting by Davide Barbuscia and Marwa Rashad Editing by Gareth Jones) ((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))