IMF forecasts 3.3% contraction of Saudi economy amid regional conflict and Houthi attacks

Saudi Arabia’s economy is projected to contract by 3.3 percent in 2026, according to the International Monetary Fund’s latest World Economic Outlook report, as escalating Houthi attacks and disruptions to regional shipping routes place increasing pressure on the world’s largest oil exporter. The IMF also forecast an economic contraction across the region, citing restrictions imposed by Iran on shipping through the Strait of Hormuz, a critical route for global oil exports. Saudi Arabia has faced mounting economic pressures since Iran restricted navigation through the strait following the US-Israeli attacks on 28th February. The situation has been further complicated by the resumption of fighting in Yemen in July, following a prolonged period of relative calm between the Iran-backed Houthi movement and […]