Middle East and North Africa Bounce Back: Economic Growth Projections for 2024 and 2025 Amid Ongoing Conflicts and Global Economic Challenges.

The Middle East and North Africa region is projected to experience growth rates of 2.7% in 2024 and 4.2% in 2025, signaling a return to pre-pandemic levels of low growth seen in the decade leading up to the global crisis. This growth outlook is part of a broader trend of slowing global economic growth, with variations in growth patterns across advanced, emerging market, and developing economies.

Economic projections show that Gulf Cooperation Council countries are expected to grow at an impressive rate of 2.8% in 2024 and 4.7% in 2025. The UAE is expected to see a significant increase in real GDP growth with estimates of 3.9% in 2024 and 4.1% in 2025. Saudi Arabia, Kuwait, Bahrain, Qatar, and Oman are also forecasted for growth albeit at varying rates.

However, ongoing conflicts in the region continue to have devastating effects on the economy and people’s lives, particularly in the Gaza Strip where loss of life, displacement, and destruction of infrastructure have led to a severe humanitarian crisis. The report warns that impending famine and catastrophic hunger could lead to long-term implications for children affected by these conflicts if not addressed urgently.

Global economic challenges such as the repercussions of the COVID-19 pandemic, Russian invasion of Ukraine, and rising inflation rates are compounding these challenges further contributing to slower growth rates across the region with emerging market and developing economies expected to grow at a slower pace compared to pre-pandemic levels. Despite these challenges, the World Bank remains cautiously optimistic about the region’s economic prospects while emphasizing the need for resilience and adaptation in the face of ongoing conflicts and global economic uncertainties.

Sustainable growth policies and investments will be key factors that can navigate this complex economic landscape going forward