RIYADH: Saudi Arabia’s gross domestic product is projected to grow by 4.1 percent in 2027, outpacing both the world economy, the G20, and the G7, according to the Organization for Economic Cooperation and Development. The Kingdom’s projected expansion exceeds the OECD’s forecasts of 3 percent for both global gross domestic product and the G20, while also surpassing the growth rates projected for each G7 economy. The outlook marks a sharp acceleration from a projected 1.8 percent contraction in 2026, following estimated growth of 4.6 percent in 2025. The OECD’s projections come against a backdrop of moderating global activity. International growth slowed to an annualized rate of 2.6 percent in the first half of 2026, compared with 3.6 percent in the second half of 2025, although the organization said economic activity had remained resilient in many countries despite the impact of the Middle East conflict. The OECD projects global economic growth at 2.9 percent in 2026, a 0.1-point increase from its June forecast. “Global growth moderated in the first half of 2026, but remained resilient in many countries despite the adverse effects from the conflict in the Middle East. Sizeable oil inventories, additional supply from outside the Gulf economies and discretionary government support measures all helped to cushion the impact on the global economy,” the OECD said. According to the report, Saudi Arabia’s inflation rate is also expected to remain contained at 1.8 percent in 2026 and 2.1 percent in 2027. Wider outlook The OECD said that economic growth among G20 countries is projected at 3.1 percent in 2026 and 3 percent in 2027. Among major economies, US GDP growth is projected at 2.2 percent in 2026 and 2.1 percent in 2027, while growth in the euro area is expected to remain at 1 percent in both years. China’s economic growth is forecast to slow to 4.5 percent in 2026 and 4.2 percent in 2027. The OECD added that India’s GDP is projected to grow by 7.1 percent in fiscal 2026–27 and 6.5 percent in fiscal 2027–28. G20 headline inflation is projected to increase to 4.1 percent in 2026 before easing to 3.6 percent in 2027. Core inflation in advanced G20 economies is expected to decline from 2.7 percent in 2026 to 2.5 percent in 2027. Risks to the global economic outlook According to the OECD, prospects still hinge on whether a durable resolution of the Middle East conflict is achieved, which includes the complete reopening of the Strait of Hormuz. Downside risks include a more prolonged energy shock, a strong El Nino that hits agriculture and food prices, further rises in bond yields, and AI investment returns falling short of market expectations.