World Bank Projects 2.6% Economic Growth for MENA Region in 2025

In its semi-annual report released in April 2025, the World Bank forecasted that the Middle East and North Africa (MENA) region will see economic growth of 2.6% in 2025, up from 1.9% in 2024. The report attributes this modest improvement to ongoing uncertainty linked to geopolitical developments, climate shocks, oil market volatility, and a shifting global economic landscape.

Challenges and Opportunities
The report highlights several key challenges facing the region, including persistent conflicts, severe climate conditions, oil price fluctuations, and changing global policies. These factors continue to weigh on the region’s economic outlook.

The World Bank emphasized the urgent need to strengthen the role of the private sector as a key driver of growth. It noted that weak private sector performance remains a primary reason for sluggish growth in the region. Few firms invest in human capital or innovation, and there remains a significant divide between the formal and informal economies, alongside limited female participation in the labor force.

To achieve sustainable growth, the report recommends that governments focus on enhancing market competition, improving the business climate, and investing in data collection and accessibility. It also calls for greater efforts to empower women and increase their labor force participation—estimating that closing the gender gap in labor markets could raise per capita income by up to 50% in some MENA countries.

In conclusion, the World Bank stressed that unlocking the region’s growth potential hinges on the ability of governments and businesses to confront current challenges and implement reforms that elevate the private sector and enable inclusive, long-term development.