World Bank predicts modest economic growth for MENA in 2024, 2025

Shafaq News/ The World Bank predicts a 2.8% growth rate in the Middle East and North Africa (MENA) region in 2024, rising to 4.2% by 2025.

This predicted gain is linked to a gradual increase in oil output and stronger economic activity beginning in the fourth quarter of 2024.

The 2024 predictions are lower than those made in January, reflecting the impact of protracted oil production cuts and continued regional conflicts, according to the most recent edition of the World Bank's Global Economic Prospects report.

Non-oil activities are predicted to sustain growth in Saudi Arabia in 2024, followed by a gradual restoration of oil activity in 2025.

For oil-exporting countries outside the Gulf Cooperation Council, the anticipated rebound in the oil sector in 2025 is expected to boost growth in Algeria and Iraq.

Oil-importing countries' growth is expected to accelerate to 2.9% in 2024, followed by a 4% annual growth rate in 2025-2026.

Egypt's growth is expected to accelerate as a result of increasing investment, which will be aided in part by the large contract with UAE.

Jordan's growth rate is expected to stay constant, however tourism-related industries may suffer short-term hurdles.

Tunisia's growth is predicted to rebound, while Djibouti and Morocco's economies are expected to contract in 2024.

The economy of the West Bank and Gaza is expected to fall by at least 6.5%, with a potential contraction of up to 9.4% in 2024.

Syria and Yemen's prognosis remains grim and uncertain due to protracted hostilities, domestic unrest, and Red Sea tensions.