RIYADH: Saudi Arabia’s gross domestic product growth is projected to pick up to 4.5 percent in 2027, according to an industry report.
A Middle East economic update from the Institute of Chartered Accountants in England and Wales projected a moderation in Saudi economic growth, from 4.5 percent in 2025 to 4.3 percent in 2026.
The non-oil sector shows robust strength, with the Purchasing Managers’ Index soaring to 60.2 in October, its second-highest level since 2014, reflecting strong gains in output, new orders, and employment.
“We expect non-oil activity to expand by 5 percent in 2026, from 4.6 percent this year, and accelerate to 5.3 percent year-on-year in 2027,” the ICAEW added.
However, the institute noted that the fiscal deficit widened sharply to SR88.5 billion ($23.5 billion) in the third quarter of 2025, and the full-year deficit forecast for 2025 has been raised to 5.3 percent of GDP, with an expected widening to 5.6 percent in 2026.
