IMF Revises Saudi Arabia’s Economic Growth Outlook Upward for 2026
International Monetary Fund upgrades Riyadh’s forecast on the back of resilience in non-oil sectors and structural reforms
The International Monetary Fund has raised its forecast for Saudi Arabia’s economic growth in two thousand twenty six, reflecting stronger performance in both oil and non-oil sectors and the Kingdom’s broader economic reforms.
In its latest World Economic Outlook update, the IMF now projects that Saudi Arabia’s gross domestic product will expand by approximately four percent in two thousand twenty six, up from earlier estimates and signalling robust momentum in the region’s largest economy.
These upgraded projections highlight the resilience of the Saudi economy amidst a challenging global backdrop of slower growth and geopolitical uncertainties, with non-oil activities such as services, manufacturing and tourism contributing significantly to overall expansion.
The decision to raise the forecast follows strong economic data showing growth in domestic demand, diversification of revenue sources and effective policy measures under Saudi Vision 2030, the government’s long-term strategy to reduce dependence on hydrocarbons and develop new engines of growth.
Policymakers in Riyadh have emphasised that sustained structural reforms and targeted investments in strategic sectors are bolstering private sector activity and attracting foreign investment, bolstering confidence in the Kingdom’s medium-term prospects.
The IMF’s projection aligns with signs of economic resilience seen in recent reports, including contained inflation, robust foreign reserves and stable public finances, all of which contribute to a positive outlook for two thousand twenty six.
Officials in Riyadh have welcomed the revised forecast, characterising it as a validation of ongoing efforts to strengthen economic fundamentals and support inclusive growth.
The upgraded outlook positions Saudi Arabia among the faster-growing major economies in its region and underscores the impact of diversification initiatives in sustaining expansion beyond the energy sector.
In its latest World Economic Outlook update, the IMF now projects that Saudi Arabia’s gross domestic product will expand by approximately four percent in two thousand twenty six, up from earlier estimates and signalling robust momentum in the region’s largest economy.
These upgraded projections highlight the resilience of the Saudi economy amidst a challenging global backdrop of slower growth and geopolitical uncertainties, with non-oil activities such as services, manufacturing and tourism contributing significantly to overall expansion.
The decision to raise the forecast follows strong economic data showing growth in domestic demand, diversification of revenue sources and effective policy measures under Saudi Vision 2030, the government’s long-term strategy to reduce dependence on hydrocarbons and develop new engines of growth.
Policymakers in Riyadh have emphasised that sustained structural reforms and targeted investments in strategic sectors are bolstering private sector activity and attracting foreign investment, bolstering confidence in the Kingdom’s medium-term prospects.
The IMF’s projection aligns with signs of economic resilience seen in recent reports, including contained inflation, robust foreign reserves and stable public finances, all of which contribute to a positive outlook for two thousand twenty six.
Officials in Riyadh have welcomed the revised forecast, characterising it as a validation of ongoing efforts to strengthen economic fundamentals and support inclusive growth.
The upgraded outlook positions Saudi Arabia among the faster-growing major economies in its region and underscores the impact of diversification initiatives in sustaining expansion beyond the energy sector.