RIYADH: Saudi Arabia’s economy is expected to stay resilient amid geopolitical conflicts and is expected to grow by 1.7 percent this year before accelerating to 5.5 percent in 2027, according to the International Monetary Fund.
In its latest Article IV Consultation report, the IMF said that Saudi Arabia entered 2026 with strong momentum after its economy expanded by 4.6 percent in 2025, driven by the gradual unwinding of OPEC+ production cuts and robust domestic demand in the non-oil sector.
Inflation eased to below 2 percent, the labor market remained strong with low unemployment among Saudi nationals, foreign reserves stayed comfortable, and the banking sector maintained strong capital and liquidity buffers.
In June, the Organization for Economic Co-operation and Development said that the Kingdom’s economy is set to expand by 3.2 percent this year before accelerating to 4.3 percent in 2027.
In its latest report, the IMF said that while the war in the Middle East and the near halt in shipping through the Strait of Hormuz have disrupted activity, curtailed trade, including oil exports, and dented confidence, the Kingdom’s economy is “showing agility and resilience, reflecting Saudi Arabia’s strong macroeconomic fundamentals and diversified oil and logistics infrastructure.”
