Kuwait is expected to be among the fastest-growing economies in the Gulf in 2027, with the International Monetary Fund (IMF) forecasting economic expansion of more than 10 percent as the region rebounds from a slower growth phase expected next year.
According to the IMF’s latest World Economic Outlook, the Middle East and Central Asia region is projected to experience a significant slowdown in 2026, with growth easing to 0.7 percent-1.2 percentage points lower than the Fund’s April forecast. However, the IMF expects a strong recovery in 2027, with regional growth accelerating to 6.5 percent.
The report identifies Kuwait, Qatar and Iraq as the region’s strongest performers in 2027, with each economy projected to grow by more than 10 percent. The IMF also revised upward its outlook for Saudi Arabia, raising its 2027 growth forecast by one percentage point to 5.5 percent.
Globally, the IMF trimmed its 2026 growth forecast slightly to 3.0 percent, down from its April projection, reflecting continued uncertainty in the international economy.
Growth is expected to improve to 3.4 percent in 2027, although both figures remain below the average global growth recorded in 2024 and 2025.
The Fund’s latest projections point to a two-speed outlook, with short-term challenges weighing on regional and global economies in 2026, followed by a stronger recovery driven by improved economic conditions and higher growth across key Gulf markets.
