RIYADH: With real gross domestic product expected to increase 2.6 percent in 2025 and 3.7 percent in 2026, the World Bank has stated that the Middle East and North Africa is on pace for a moderate economic recovery following the sluggish growth in 2024. According to its most recent economic outlook, “Shifting Gears: The Private Sector as an Engine of Growth in the Middle East and North Africa,” the improved forecast was due to a recovery in agricultural output across oil-importing economies, the relaxation of OPEC+ production cuts, and robust private consumption.
The research notes that although the recovery is in progress, the area is still susceptible to geopolitical tensions, disruptions caused by climate change, and volatility in the world’s oil and trade markets. This comes after growth of only 1.9% in 2024. “Our macroeconomists predict a moderate acceleration of growth in 2025 and 2026,” stated Ousmane Dione, World Bank vice president for the Middle East and North Africa, in the foreword to the study.
“Managing risks and implementing urgently needed reforms are essential to achieving the region’s potential.” He went on to say that the region’s trajectory is being shaped by instability and ongoing problems, making the economic picture still uncertain. “Economies affected by conflict are showing some encouraging signs, but the situation is still precarious and there are still significant structural issues in the face of uncertain global policy,” Dione said.
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