IMF chief forecasts strong economic growth for Saudi Arabia in 2027

International Monetary Fund Managing Director Kristalina Georgieva has forecast a strong boost to Saudi Arabia’s economic growth in 2027, supported by a recovery in production and exports, oil price levels, and continued efforts to diversify the economy.

Speaking to Al Arabiya Business, Georgieva said, "Our estimates are very close regarding the expected contraction this year, and we agree on a V-shaped recovery, meaning a strong rebound in growth next year."

Georgieva added that this recovery will be based on three main factors. The first is the rebound in production and exports. Even if the conflict continues, efforts to find alternative routes for exports to reach partners have proven effective, and we believe these efforts will continue and expand.

She continued, the second factor is the expectation that oil prices will remain relatively high even if the conflict ends tomorrow, as global inventories have been depleted and rebuilding them will take some time. Countries are also likely to build larger reserves than before, based on their experience with the closure of the Strait of Hormuz.

Georgieva concluded, "I strongly believe that the Kingdom will continue to diversify its economy and enhance its dynamism through this path as well. We do not yet fully know how they arrived at the projected growth figures for 2027, and we will see if our forecasts align exactly, but we agree on the general direction—we expect a strong boost to growth in Saudi Arabia."

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