IMF Projects 3.7% Growth for Saudi Economy in 2026

The International Monetary Fund (IMF) forecasts Saudi Arabia's economy will grow by 3.7% in 2026, an increase from 3% in 2025 and 1.3% in the previous year. However, these numbers reflect a downward revision from their earlier prediction in the April 2025 World Economic Outlook, where they had projected a 4.1% growth for the kingdom.

Additionally, the IMF has warned of a global growth slowdown, driven by shifting policies and heightened uncertainty. While global inflation is expected to continue its decline, several countries have revised their inflation forecasts upwards.

The report further indicated that risks to the economic outlook are predominantly negative, with escalating trade tensions and rising policy uncertainty potentially stalling growth. The IMF cautioned that these policy shifts could lead to a sudden tightening of global financial conditions and capital outflows, a scenario that would particularly impact emerging markets.