IMF raises Saudi Arabia 2027 GDP growth forecast to 7.9%

The International Monetary Fund (IMF) has significantly raised its GDP growth forecast for Saudi Arabia to 7.9% for the year 2027. This represents a 2.4 percentage point increase from the July 2026 estimate of 5.5%.

In contrast, the IMF lowered its economic performance outlook for Saudi Arabia in 2026, projecting a contraction of 3.3%. Regarding inflation, the report expects price levels in the Kingdom to decline to 1.9% in 2026 from 2% in 2025, before rising slightly to 2.2% in 2027. The IMF noted that the Saudi economy remains resilient against geopolitical disruptions due to diversified energy export routes.

On a broader scale, the IMF predicts global real GDP growth will slow to 3.1% in 2026 before accelerating to 3.4% in 2027. Global inflation is expected to rise to 4.7% in 2026, down from 4.1% in 2025, and then settle at 4.1% in 2027. The report highlighted that investments in artificial intelligence are supporting growth and exports in several economies, despite challenges from energy costs and trade disruptions.