MENA economies to shrink 0.5% this year, before sharp uptick in 2027
The Middle East and North Africa region is forecast to contract by 0.5% this year, as geopolitical unrest and disruptions to critical sectors dent economic growth.
Iraq, Kuwait and Qatar - commodity producers most affected by interruptions to energy output and transport - are projected to experience sharp contractions of their economies in 2026, followed by double-digit expansions in 2027, the International Monetary Fund said in its latest World Economic Outlook update out this week.
Saudi Arabia’s economy, meanwhile, is projected to grow 1.1% in 2026 and 5.5% in 2027, as a result of diversified export routes. Iran’s 2026 growth projection has been revised upward by 0.7 percentage point from the fund’s April estimate, to –5.4%, reflecting a better outturn for oil exports in March and April and some relaxation of the restrictions on the country’s exports.
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