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Analysis by Region - Emerging Markets - Saudi Arabia

Publisher Oxford Economics
Published Aug 29, 2025
Length 7 Pages
SKU # OFE20418439

Description

We've revised our 2025 GDP growth forecast for Saudi Arabia up to 4.2% from 3.7% following a strong Q2 2025 flash estimate for real GDP growth. The flash estimate, published by GASTAT on July 31, revealed that GDP grew by 4.5% y/y in Q2. This was the strongest reading since Q1 2023, exceeding our previous forecast and market expectations. We now expect less carry-over into next year as a result of base effects from stronger-than-expected oil activities in Q2. Accordingly, we've lowered our 2026 GDP growth forecast to 4.8% from 5.3%.

Table of Contents

7 Pages
Saudi Arabia: GDP flash estimate reveals strong growth in Q2
Forecast overview
Recent developments
Short-term outlook
Key drivers of our short-term forecast
Economic risk
Economic risk evaluation
Risk warnings
What to watch out for
Exposure to key global risks
Background
Economic development
Structure of the economy
Politics
Economic policy

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