RIYADH: The International Monetary Fund raised its 2026 growth forecast for Saudi Arabia to 4.5 percent, citing higher oil output, resilient domestic demand, and continued economic reforms across the region.
The revised projection marks a 0.5 percentage point upgrade from the IMF’s October report, according to the fund’s latest World Economic Outlook Update. Saudi Arabia’s economy is expected to have grown 4.3 percent in 2025, with expansion set to ease to 3.6 percent in 2027.
This comes as the World Bank said earlier this month that Saudi Arabia’s gross domestic product is expected to grow by 4.3 percent in 2026 and 4.4 percent in 2027, up from an estimated 3.8 percent in 2025.
The IMF expects growth momentum to build across the broader Middle East and North Africa and the Gulf Cooperation Council region.
In its latest report, the IMF stated: “In the Middle East and Central Asia, growth is projected to accelerate from 3.7 percent in 2025 to 3.9 percent in 2026 and to 4.0 percent in 2027, supported by higher oil output, resilient local demand, and ongoing reforms.”
