OECD forecasts 3.7% growth for Saudi Arabia, citing US tariff shield
The kingdom is projected to grow at 3.7% this year, 1.9 percentage points more than forecasted in June.
The OECD raised Saudi Arabia’s economic growth forecast by 1.9% on Tuesday — much higher than any other country — citing strong domestic demand and the kingdom being shielded from US President Donald Trump’s tariffs that have shaken global markets.
Founded in 1961, the Paris-based OECD (Organisation for Economic Co-operation and Development) is an intergovernmental body of 38 member states. On Tuesday, it released its Interim Economic Outlook report detailing updated global growth projections.
OECD outlook: In June, the OECD expected Saudi growth of 1.8% in 2025; the latest forecast nearly doubles that figure to 3.7%.
Saudi Arabia’s upgrade far outpaced every other country in the report. The next-largest revisions were for Japan, Mexico and India — each raised by 0.4 percentage points — with growth now expected at 1.1%, 0.8% and 6.7% in 2025, respectively.
