S&P Global expects Saudi economy to grow by 4.7% in 2025

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S&P Global Ratings expects Saudi Arabia's gross domestic product (GDP) to grow by 0.8% in 2024 and 4.7% in 2025.

The agency said in a report that its forecasts for 2024 and 2025 were downgraded by approximately 0.6 basis points (bps), compared to its previous projections in September. The reduction reflects a lower projection for oil production, compared to prior estimates.

The change was due to the agency's downward adjustment of the oil production assumption to 9.5 million barrels per day (bpd), compared to the previous estimate of 9.7 million bpd, as well as weaker-than-expected growth in the non-oil sector in Q3 2024, which led to lowering the Kingdom’s GDP growth forecast.

S&P Global maintained its inflation forecast at 1.8% in 2024, expecting it to reach 1.7% in 2025, compared to its previous forecast of 1.6%.

In September, S&P Global predicted a growth rate of 1.4% for the Saudi economy in 2024, and 5.3% in 2025, according to data with Argaam.