The World Bank has sharply reduced its economic growth forecast for the Middle East in 2026, citing disruptions caused by ongoing conflict and energy market instability. Growth is now expected to drop to around 1.8%, significantly lower than earlier estimates.
The report highlights the impact of supply chain disruptions, infrastructure damage, and declining oil revenues on regional economies. Gulf countries are expected to experience slower growth due to reduced hydrocarbon output.
Experts warn that prolonged instability could further weaken economic recovery and delay diversification efforts across the region.
Source : The Economic Times.
