MENA Economic Growth Accelerates to 3.3% in 2025 Despite Conflicts

The International Monetary Fund (IMF) reports accelerated economic growth in the Middle East and North Africa (MENA) region for 2025, with GDP expected to grow by 3.3% this year and 3.7% in 2026, surpassing earlier forecasts. This growth is attributed to increased oil production in Gulf countries and recovery in tourism, industry, and agriculture across other nations, despite ongoing geopolitical tensions and conflicts, including the war in Gaza. IMF Director Jihad Azour highlighted the region's resilience amid shocks such as trade disruptions, geopolitical tensions, and oil price volatility, noting that countries like Jordan and Egypt near conflict zones have maintained relative stability. The current ceasefire in Gaza is seen as a positive but preliminary development, with the long-term economic impact dependent on improvements in regional stability and reconstruction efforts in Gaza, Syria, Lebanon, and the West Bank. Priorities include assessing damage in conflict areas and mobilizing reconstruction funding with the support of international organizations like the United Nations and World Bank, while financing needs remain significant in other conflict-affected countries such as Yemen and Sudan. Additionally, IMF discussions with Egypt emphasize accelerating its growth agenda, including enhancing private sector competition and advancing asset sales to improve economic stability and growth.