The International Monetary Fund (IMF) has revised its expectations for the economic growth of Saudi Arabia. The agency now estimates that the Kingdom will see a growth rate of 5.5% in 2025.
The prediction marks an increase from its previous estimate of 4.5%, issued in October 2023.
The IMF also estimated that Saudi Arabia’s gross domestic product (GDP) will grow 2.7% in 2024, marking a decrease from its previous 4% forecast. The wider region (Middle East & North Africa) is predicted to grow by 2.9% this year.
These latest revisions were made based on the data published in the IMF’s report “Updates on Global Economic Prospects” in January 2024, which highlighted the optimistic outlook for the Kingdom’s economic performance, despite the risks and challenges present in the global economic landscape.
In the fourth quarter of 2023, Saudi Arabia’s GDP shrank an estimated 3.7% year on year, according to data published by the government’s statistics agency. The economic drop was attributed to a 16.4% decline in oil activities.
The IMF’s World Economic Outlook report has projected a steady global growth rate of 3.1% in 2024, indicating a 0.2 percentage point increase from October projections. The agency has estimated the global economy will achieve a growth rate of 3.2% in 2025.
