BEIRUT, Lebanon, Feb. 25 (UPI) -- The Arab region, still facing the repercussions of wars and conflicts amid heightened global uncertainty, geopolitical tensions and strained financial conditions, is experiencing a gradual economic recovery, with regional growth projected to reach 3.7% this year, a new report says.
According to a United Nations Economic and Social Commission for Western Asia report released Wednesday, achieving sustainable and inclusive growth in the Arab region, however, remains a major challenge.
The report, titled "Macroeconomic Outlook in the Arab Region," noted that while easing inflation and stabilizing oil prices have provided some relief, ongoing conflicts, trade disruptions and elevated global tariff uncertainties continue to steer the economic outlook.
It projected regional growth to increase to 3.7% in 2026 from from 2.9% in 2025, regional inflation to decline to 5.4% in 2026 from 8.2% in 2025 and total exports to grow, supported by an expansion in non-oil areas.
"This improvement is underpinned by ongoing economic diversification efforts, particularly in high-income countries, fiscal reform measures and increased investment in non-hydrocarbon sectors," acting commission Secretary Mourad Wahba said.
