IMF Slashes Saudi Growth Forecast—Oil Kingdom Feels the Squeeze

The International Monetary Fund just downgraded Saudi Arabia’s economic outlook—turns out even petrostates can’t defy gravity forever. Here’s the breakdown: • Growth cut to 2.7% for 2025 (down 0.3%) • Non-oil sector slowdown hits hardest • Fiscal buffers shrinking faster than a meme coin’s liquidity pool. The takeaway? Vision 2030’s economic pivot just got harder—and those sovereign wealth funds won’t cashflow themselves. But hey, at least they’re not Argentina... yet.

Saudi Arabia’s Growth Outlook Lowered By IMF

Financial analysts at the IMF also wrote that trade wars, tariffs, and conflicts are eating into Saudi Arabia’s revenues. Not just for 2025, the IMF also reduced the Kingdom’s growth outlook for 2026 by 0.4%. The growth rate for 2026 now stands at 3.7% from the previous projected number.

” the IMF’s economists wrote in the April outlook on Saudi Arabia.

The report stated that conflicts are a cause of concern as oil prices are projected to dip. Crude oil has already fallen to a low of $64 and is projected to dip below the $60 mark.said the IMF in Saudi Arabia.

The latest report also sheds light on an upcoming decline in commodity prices due to lower oil production.wrote the IMF on Saudi Arabia.