IMF Raises Saudi Arabia’s 2027 Growth Forecast to 7.9%
The IMF lifted its 2027 forecast from 5.5% to 7.9%, while revising 2026 to a 3.3% contraction.
The International Monetary Fund has raised its forecast for Saudi Arabia’s economic growth in 2027 to 7.9%, up from 5.5% in its July projection. The revision, published in the IMF’s October 2026 World Economic Outlook, represents an increase of 2.4 percentage points.
For 2026, however, the IMF now expects the Saudi economy to contract by 3.3%, compared with its previous forecast of 1.7% growth. The fund said the Kingdom remains relatively resilient to geopolitical instability due in part to diversified energy export routes that can help reduce the impact of supply chain and transportation disruptions.
Inflation is projected at 1.9% in 2026, down slightly from 2% in 2025, before rising to 2.2% in 2027. Regionally, the IMF expects economic activity to improve next year as production, exports and logistics services move closer to normal levels.
Globally, the fund expects growth to slow from 3.5% in 2025 to 3.1% in 2026 before accelerating to 3.4% in 2027. Separately, Saudi Arabia’s Ministry of Finance has projected real GDP growth of 12.8% in 2027 in its preliminary budget statement, significantly above the IMF estimate.
