RIYADH: The International Monetary Fund has raised Saudi Arabia’s economic growth forecast for 2027 to 5.5 percent, up from the 4.5 percent it projected in April, as the Kingdom is expected to be less affected by regional disruptions due to its diversified export routes.
The revised forecast, published in the IMF’s July 2026 World Economic Outlook Update, point to a temporary slowdown in Saudi Arabia’s economy this year before a stronger rebound in 2027.
The fund lowered its 2026 growth forecast to 1.7 percent from the 3.1 percent projected in April, citing updated assumptions related to the conflict in the Middle East and disruptions to trade routes.
The forecast comes a month after the Organization for Economic Co-operation and Development projected the Kingdom’s economy to expand 4.3 percent in 2027, supported by a resilient non-oil sector and robust domestic demand.
The IMF’s latest report forecast that growth across the Middle East and Central Asia is projected to slow to 0.7 percent in 2026 before rebounding to 6.5 percent in 2027, a sharp shift from April’s figures of 1.9 percent and 4.6 percent, respectively.
