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IMF Cuts 2026 Growth Estimate for Saudi Arabia, Lifts 2027 Forecast

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The International Monetary Fund trimmed its economic growth forecast for Saudi Arabia in 2026, while noting that the country is "somewhat less affected" than its neighbors by the prolonged closure of the Strait of Hormuz due to more diversified export routes.

The fund now expects the country's gross domestic product to grow 1.7% in 2026, according to the World Economic Outlook update published Wednesday. The revised estimate represents a decline of 1.4 percentage points from the fund's April estimate.

Meanwhile, the IMF lifted its 2027 growth forecast for Saudi Arabia to 5.5% from 4.5%.

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