403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Middle East War Forces World Bank to Downgrade Economic Outlook
(MENAFN) The World Bank on Wednesday downgraded economic growth projections for multiple regions, warning that the ongoing Middle East conflict is already taking a heavy toll on nearby economies, with Gulf countries expected to face the sharpest slowdown.
In its latest regional economic update, the Bank cited the closure of the Strait of Hormuz and widespread damage to energy and public infrastructure as factors disrupting markets, increasing financial volatility, and weakening the 2026 outlook across several regions.
The Middle East, North Africa, Afghanistan, and Pakistan were noted as particularly affected, with the conflict adding pressure to economies already challenged by low productivity, weak private sector dynamism, and persistent labor market issues.
Excluding Iran, regional growth is now projected to slow from 4% in 2025 to 1.8% in 2026, a 2.4 percentage point reduction from earlier forecasts. The steepest decline is expected in Gulf Cooperation Council (GCC) economies and Iraq, which are heavily exposed to the war. Growth in GCC countries was cut by 3.1 percentage points from prior projections, slowing from 4.4% in 2025 to 1.3% in 2026.
In its latest regional economic update, the Bank cited the closure of the Strait of Hormuz and widespread damage to energy and public infrastructure as factors disrupting markets, increasing financial volatility, and weakening the 2026 outlook across several regions.
The Middle East, North Africa, Afghanistan, and Pakistan were noted as particularly affected, with the conflict adding pressure to economies already challenged by low productivity, weak private sector dynamism, and persistent labor market issues.
Excluding Iran, regional growth is now projected to slow from 4% in 2025 to 1.8% in 2026, a 2.4 percentage point reduction from earlier forecasts. The steepest decline is expected in Gulf Cooperation Council (GCC) economies and Iraq, which are heavily exposed to the war. Growth in GCC countries was cut by 3.1 percentage points from prior projections, slowing from 4.4% in 2025 to 1.3% in 2026.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research
More Story
Comments
No comment