Saudi economy forecast to grow 3% in 2025: IMF

The Kingdom of Saudi Arabia's flag

Saudi Arabia's economy is expected to grow by 3% in 2025, the International Monetary Fund (IMF) said in its April report, revising down its previous 3.3% estimate.

In its World Economic Outlook Report, the IMF cut its projections for Saudi Arabia's GDP growth in 2026 to 3.7%, compared to 4.1% previously.

Saudi Arabia’s real GDP is expected to grow by 3% in 2025, with further acceleration to 3.7% in 2026, the report added.

The IMF also anticipated a global growth slowdown amid shifts in policies and heightened uncertainty, with global inflation seen receding. It, however, upgraded its projections for some countries.

The swift escalation of trade tensions and high levels of policy uncertainty are poised to hinder growth. The shift in policies may lead to sudden tightening of global financial conditions and capital outflows, which could weigh on emerging markets in specific, according to the report.