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IMF Slashes 2025 MENA Growth Forecast to 2.6% as Risks Intensify

Weaker oil prices, global trade tensions, and regional conflicts drive the sharp downgrade from October's 4% projection.

FILE - Jihad Azour, the director of the Middle East and Central Asia Department at the International Monetary Fund, speaks to The Associated Press in Dubai, United Arab Emirates, Tuesday, May 2, 2023. (AP Photo/Jon Gambrell, File)
A view shows Beirut's skyline as seen from Mansourieh, Lebanon April 16, 2025. REUTERS/Mohamed Azakir/File Photo
FILE - People shop for gold at a jewelry market in Dubai, United Arab Emirates, Wednesday, April 9, 2025. (AP Photo/Altaf Qadri, File)
FILE - An Emirati man is seen in the Dubai Financial Market in Dubai, United Arab Emirates, Monday, April 7, 2025. (AP Photos/Fatima Shbair, File)

Overview

  • The IMF now projects 2025 GDP growth for the Middle East and North Africa at 2.6%, significantly lower than its October forecast of 4%.
  • The downgrade reflects challenges including declining oil prices, global trade uncertainties, and prolonged regional conflicts.
  • Growth for oil-importing MENA countries is now forecasted at 3.4%, down from 3.6%, while GCC economies are expected to grow by 3%, revised from 4.2%.
  • The IMF emphasizes the need for structural reforms, economic diversification, and productivity improvements to strengthen non-oil sectors.
  • Discussions with Lebanese officials and calls for international support for Syria highlight the pressing need for recovery in fragile states.