Saudi Arabia’s economic forecast for 2025 anticipates significant growth, with GDP expected to rise by 3.7% annually, surpassing the global average of 3.2%. Consumer spending is set to increase by 4.5%, and inflation is projected at 2%.
This growth is fueled by strong non-oil activities and aligns with Vision 2030’s diversification goals. The government plans to invest in infrastructure, supported by private sector contributions and lower interest rates, boosting employment and consumption.
Tourism remains a key economic driver in the region, with the GCC becoming a top global destination. The strength of USD-pegged currencies further boosts travel demand.
According to Mastercard’s chief economist, Saudi Arabia’s economic reforms and diversification efforts will sustain its growth, making it a regional economic leader in 2025.
Key Insights from the Report:
- Pricing Strategies: Consumers may opt for affordable alternatives as prices rise, especially in travel, where ‘travel twins’ offer cheaper, similar experiences to popular destinations.
- Experience Economy: Spending on experiences over material goods continues to thrive, with Saudi Arabia seeing a significant increase in leisure and entertainment spending.
- Migration and Remittances: Migration boosts Saudi Arabia’s population and remittances, with digital payment systems enhancing efficiency and security.
- Women’s Workforce Participation: Female workforce participation in Saudi Arabia has risen, driven by government policies and flexible work options, contributing to economic growth.
- Inflation Trends: Global inflation pressures have eased, with a predicted rate of 3.2% for 2025, due to lower durable goods prices and moderated wage growth.
The ‘Economic Outlook 2025’ report, based on extensive data, offers insights into these economic trends and forecasts for the coming year.