RIYADH: The Arab region is on a path of gradual economic recovery this year, according to a UN report that forecast growth reaching 3.7 percent and a gradual decline in inflation.
The UN Economic and Social Commission for Western Asia warned in its Macroeconomic Outlook for the Arab region that the persistence of geopolitical fog and risks to global trade remains a pressure factor on the region’s growth prospects.
ESCWA projected regional gross domestic product to have grown by 2.9 percent in 2025 before accelerating to 3.7 percent in 2026, supported by diversification efforts, fiscal reforms, and investment in non-hydrocarbon sectors.
Inflation across the region is expected to decline from 8.2 percent in 2025 to 5.4 percent by 2027, driven by easing commodity prices and the normalization of supply chains, the report said.
In its latest economic update, the World Bank said that regional GDP in the Middle East, North Africa, Afghanistan, and Pakistan is projected to grow by 3.3 percent in 2026, driven by stronger-than-expected performance in Gulf Cooperation Council countries and developing oil importers.
