Saudi Arabia’s economy is expected to grow by 2.5% in 2026, outpacing forecasts for the US, Germany, the UK, and France, according to the OECD’s latest outlook. The report also predicts 1.8% growth in 2024, placing the Kingdom ahead of several G20 peers this year as well.
In comparison:
- US: 1.6% (2025), 1.5% (2026)
- Germany: 1.2% (both years)
- UK: 1.3% (2025), slowing to 1.0% (2026)
- France: 0.6% (2025), 0.9% (2026)
The OECD also forecasts moderate inflation in Saudi Arabia, at 1.9% in 2025 and 1.8% in 2026, consistent with IMF projections. This contrasts with a higher G20 average inflation rate of 3.6% in 2025 and 3.2% in 2026.
“Saudi Arabia continues to show resilience amid global economic headwinds,” the report notes.
Meanwhile, global GDP growth is expected to slow to 2.9% in both 2025 and 2026, down from 3.3% in 2024, amid rising trade barriers, tighter financial conditions, and weakening consumer confidence.
India and China will remain the growth leaders, with India’s economy expanding by 6.3% in 2025 and 6.4% in 2026, while China is expected to grow by 4.7% and 4.3%, respectively.
The OECD cautions that escalating tariffs and policy uncertainty may keep inflation high and dampen growth. It recommends global cooperation to reduce trade fragmentation, promote monetary stability, and implement structural reforms that strengthen supply chains and encourage private investment.
“Reducing uncertainty will help lower business risk premiums and unlock capital spending,” the OECD emphasized.