The International Monetary Fund (IMF) reduced its expectations for GDP growth in the Kingdom of Saudi Arabia in 2025, reducing this to 3 %, with a decrease from a previous estimate of 3.3 %. This review reflects the ongoing challenges of oil -dependent economies, as the International Monetary Fund also modifies its growth to the broader Middle East and Asia region to 3 % for this year, a decrease from previous 3.6 % expectations.
The International Monetary Fund is cited with a slower recovery than expected in oil production, regional conflicts, and delay in structural reforms as major reasons behind low growth expectations. The Kingdom of Saudi Arabia, a world leader in the world, was hoping for a strong economic recovery in 2025, with 4.4 % growth expectations in a Reuters poll in October. However, weak oil prices, market fluctuation, and global doubts are now inhibited this view, even when the Kingdom is working to diversify its economy beyond oil.
Despite these challenges, Gulf oil exporters, including the Kingdom of Saudi Arabia, are seen as relatively flexible of the oil market fluctuations due to their high reserves, low debt, and continuous economic diversification efforts. In March, the S&P promoted the long -term sovereign credit rating in the Kingdom of Saudi Arabia to “A+”, noting the strong economic foundations in the country and applying under its 2030 vision plan. However, the classification agency warned that low oil revenues could lead to an increase in financial deficit and delay in major infrastructure projects.
