The World Bank has revised its 2025 growth outlook upward for the Middle East, North Africa, Afghanistan, and Pakistan (MENAAP) region, projecting stronger economic momentum led by Gulf economies even as political instability and global headwinds weigh on the broader outlook.
According to the latest report, regional GDP is now expected to expand by 2.8 percent this year, up from the 2.6 percent forecast in April. The upgrade reflects a faster-than-expected rollback of oil production cuts across Gulf states and continued strength in non-oil sectors that are driving diversification and private sector growth.
However, the World Bank trimmed its forecast for next year, citing global economic challenges and ongoing regional instability that could dampen investment and trade. Developing oil exporters are expected to experience a sharp slowdown as conflicts and lower oil output take a toll on growth.
Iran’s economy faces particular pressure, with GDP now projected to contract by 1.7 percent this year and by a deeper 2.8 percent in 2026 — a significant downgrade from the 0.7 percent growth previously anticipated.
Despite these mixed dynamics, the Bank said the overall improvement in the MENAAP outlook signals resilience in key economies adapting to post-oil transitions and shifting global demand trends.
News Source: Emirates News Agency
