RIYADH. The Organisation for Economic Cooperation and Development (OECD) predicts Saudi Arabia’s GDP will surge from a modest 1.2% in 2024 to a robust 3.8% in 2025, positioning it as one of the fastest-growing G20 economies over the next two years.
While advanced economies brace for sluggish growth, dragged down by escalating trade tensions and stubborn inflation, Saudi Arabia’s forecast signals a striking turnaround. The OECD’s latest report highlights the Kingdom’s resilience, crediting diversification efforts under Vision 2030 and strategic investments in non-oil sectors. Even as global GDP growth is projected to slow to 3.1% in 2025 and 3% in 2026, Saudi Arabia is expected to maintain momentum, moderating only slightly to 3.6% in 2026.
Inflation Stability
The OECD forecasts the Kingdom’s inflation to hover at a stable 1.9% in 2025 and 2% in 2026—far below the G20 average of 3.8% and 3.2% for those years. This contrasts sharply with advanced economies like the U.S., where core inflation remains stubbornly above central bank targets. Analysts attribute Saudi Arabia’s price stability to prudent fiscal policies, energy subsidies, and a controlled labor market.
The report underscores Saudi Arabia’s accelerating shift from oil dependency to a diversified economic engine. giga projects like NEOM, a booming tourism sector, and a surge in private-sector investments are fueling growth. Meanwhile, the Kingdom’s inflation control offers a blueprint for nations battling post-pandemic price volatility.
As trade routes fray and supply chains sputter, Saudi Arabia’s growth story is a rare dose of optimism. With the OECD’s stamp of confidence, the Kingdom isn’t just weathering global turbulence—it’s carving a path as a G20 powerhouse.