Saudi Arabia’s gross domestic product is projected to grow by 4.1 per cent in 2027, outpacing both the world economy, the G20, and the G7, according to the Organisation for Economic Co-operation and Development.
The kingdom’s projected expansion exceeds the OECD’s forecasts of 3pc for both global gross domestic product and the G20, while also surpassing the growth rates projected for each G7 economy.
The outlook marks a sharp acceleration from a projected 1.8pc contraction in 2026, following estimated growth of 4.6pc in 2025.
The OECD’s projections come against a backdrop of moderating global activity. International growth slowed to an annualised rate of 2.6pc in the first half of 2026, compared with 3.6pc in the second half of 2025, although the organisation said economic activity had remained resilient in many countries despite the impact of the Middle East conflict.
The OECD projects global economic growth at 2.9pc in 2026, a 0.1-point increase from its June forecast.
“Global growth moderated in the first half of 2026, but remained resilient in many countries despite the adverse effects from the conflict in the Middle East. Sizeable oil inventories, additional supply from outside the Gulf economies and discretionary government support measures all helped to cushion the impact on the global economy,” the OECD said.
According to the report, Saudi Arabia’s inflation rate is also expected to remain contained at 1.8pc in 2026 and 2.1pc in 2027.
The OECD said that economic growth among G20 countries is projected at 3.1pc in 2026 and 3pc in 2027.
Among major economies, US GDP growth is projected at 2.2pc in 2026 and 2.1pc in 2027, while growth in the euro area is expected to remain at 1pc in both years.
China’s economic growth is forecast to slow to 4.5pc in 2026 and 4.2pc in 2027.
The OECD added that India’s GDP is projected to grow by 7.1pc in fiscal 2026–27 and 6.5pc in fiscal 2027–28.
G20 headline inflation is projected to increase to 4.1pc in 2026 before easing to 3.6pc in 2027. Core inflation in advanced G20 economies is expected to decline from 2.7pc in 2026 to 2.5pc in 2027.
According to the OECD, prospects still hinge on whether a durable resolution of the Middle East conflict is achieved, which includes the complete reopening of the Strait of Hormuz.
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