Global rating agency Moody’s has sharply cut the growth forecast of G-20 economies, which include Saudi Arabia, amid global uncertainties.

The G20 nations will report growth of 0.9% in 2025 and 1.4% in 2026, compared to the February estimates of 1.5% and 1.6%, the rating agency said.

Real GDP growth of G-20 emerging market countries will decelerate to 3.6% and 3.8% in 2025 and 2026, respectively, from 4.5% in 2024. 

“We project G-20 emerging market economic growth, excluding China, will cool to 3.3% in 2025 from 3.8% in 2024 before regaining momentum in 2026 with 3.6% growth,” Moody’s said.

“Tariff increases on countries and high sectoral tariffs on products such as steel and aluminium will weigh on global trade and investment decisions with considerably negative growth consequences for most G-20 economies,” Madhavi Bokil, a vice president at Moody’s, wrote in the latest global macro-outlook 2025-26 update.

The G20 is an intergovernmental forum comprising 19 sovereign countries, the European Union and the African Union.

(Editing by Seban Scaria [email protected])