IMF sees Saudi economy growing 1.7% this year and 5.5% in 2027

The International Monetary Fund forecast in its latest Article IV Consultation report, released on Thursday, July 30, 2026, that Saudi Arabia's economy will grow 1.7 percent this year before accelerating to 5.5 percent in 2027. According to the report, Saudi Arabia entered 2026 with momentum after its economy expanded 4.6 percent in 2025, driven by the gradual unwinding of OPEC+ production cuts and robust domestic demand in the non-oil sector. Inflation has eased to below 2 percent and foreign reserves were described as comfortable.

The Fund said the war in the region and the near halt in shipping through the Strait of Hormuz have disrupted activity, curtailed trade including oil exports, and dented confidence, but that the Saudi economy is showing "agility and resilience". According to the IMF, rerouting oil through the East-West pipeline, known as Petroline, to Red Sea ports limited the drop in oil deliveries, while higher oil prices more than offset the volume losses.

Saudi Finance Minister Mohammed Al-Jadaan welcomed the findings in a post on X. In June, the OECD had forecast growth of 3.2 percent this year and 4.3 percent in 2027. High-frequency indicators point to early stabilization in non-oil activity in April to June, after a likely contraction in March.