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Washington: There has been an acceleration in economic growth across the Middle East and North Africa (MENA) region this year, despite global uncertainty and escalating tensions and conflicts in the region, the International Monetary Fund (IMF) said in a report.
The report on regional economic prospects, projected that the region’s GDP will grow by 3.3 percent in 2025 and 3.7 percent in 2026, exceeding the expectations outlined in its May 2025 report, while the regional economy recorded growth of 2.1 percent in 2024.
Director of the Middle East and Central Asia Department at the IMF, Jihad Azour, stated that growth in the region appeared stronger than 2024, despite the shocks the region experienced, from trade policies to geopolitical tensions, conflicts, and oil price volatility.
Azour explained that oil-producing countries benefited from increased oil output, which offset lower prices, while other countries achieved a resurgence in tourism, industrial, and agricultural sectors.
He added that the region demonstrated its resilience in the face of a major geopolitical shock during the two-year war in Gaza, including in Jordan and Egypt, while noting that it is too early to determine the potential impact of the ceasefire on regional economic prospects, Azour highlighted.
He added that the effect of the agreement will depend on how effectively this stability can improve risk assessments in the region, in addition to the potential for reconstruction in Syria, Lebanon, Gaza, and the eventual stabilization of security in the West Bank.
He stressed that current priorities include assessing the staggering damages in Gaza, addressing urgent needs, and fulfilling reconstruction requirements in coordination with the United Nations and the World Bank.
Furthermore, Azour described the financing needs in other conflict-affected countries, such as Yemen and Sudan, as immense, given the decline in international assistance.
