IMF Projects Saudi Economy to Grow 3.3% in 2025 Amidst Global Shifts

Saudi Arabia's economy is expected to grow by 3.3% in 2025 and 4.1% in 2026, according to the International Monetary Fund’s (IMF) latest forecasts. The OPEC+ oil production cuts are influencing short-term growth expectations, contributing to a revised outlook for the Kingdom.

The IMF's January 2025 update shows that economic growth in the Middle East and Central Asia will reach 3.6% in 2025 and 3.9% in 2026, but this is lowered mainly due to Saudi Arabia’s reduced forecast, which was previously 4.6% for 2025. As the region's largest economy, Saudi Arabia's performance heavily impacts regional trends.

Despite global uncertainties also weighing on the region's outlook, Saudi Arabia has made strides in diversifying its economy through projects like NEOM and renewable energy, reducing its reliance on oil revenues. On the global stage, growth is expected to stabilize at 3.3% in 2025 and 2026, with advanced economies facing challenges.