IMF Downgrades Saudi Arabia’s 2025 Growth Outlook Due to Extended Oil Cuts

KSA, 20 January, 2025 : The International Monetary Fund (IMF) has revised Saudi Arabia’s 2025 GDP growth projection down to 3.3%, citing the impact of extended oil production cuts. The 2024 growth estimate was also reduced to 1.4%.

In its October report, the IMF had projected Saudi growth would accelerate to 4.6% in 2025 from 1.5% in 2024. However, the revised forecast contributed to lowering the overall growth projection for the Middle East and Central Asia region to 3.6% in 2025, down from 3.9% in October.

The IMF attributed the downgrade primarily to OPEC+ production cut extensions, which delay increases in oil output until April 2025. Despite the challenges, Saudi Arabia is continuing its economic transformation plan to boost non-oil sectors.

While analysts previously anticipated 4.4% growth for Saudi Arabia in 2025, declining oil prices and reduced production have dampened revenue. The IMF also forecast a 2.6% drop in energy commodity prices in 2025, exceeding earlier predictions.