IMF Sees War Slowing Saudi Growth, Oil Windfall to Cushion Blow

Dow Jones
07/30

0731 GMT - Saudi Arabia's economic growth is expected to slow to 1.7% in 2026 from 4.6% in 2025, while non-oil growth is forecast to ease to 2.6% from 4.2%, the International Monetary Fund says. The Middle East war and the near-halt in shipping through the Strait of Hormuz have disrupted trade and curtailed oil exports, the fund says. Higher oil prices, however, are expected to more than offset lower export volumes, generating an oil-revenue windfall, while recovery is expected as maritime traffic through the strait gradually normalizes.

 

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