Positive Signs for Economic Recovery in the Middle East & North Africa
The World Bank’s latest economic update for the Middle East, North Africa, Afghanistan, and Pakistan (MENAAP) highlights encouraging signs of recovery, forecasting regional growth of 2.8% in 2025 and 3.3% in 2026. Despite these improvements, the report warns that global uncertainty, shifting trade policies, and ongoing conflicts and displacement continue to pose potential risks.
Growth in the Gulf Cooperation Council (GCC) countries is expected to strengthen, supported by the gradual lifting of voluntary oil production cuts and expansion in non-oil sectors. Meanwhile, oil-importing nations in the region are projected to benefit from rising private consumption and investment, as well as a rebound in agriculture and tourism. However, developing oil-exporting economies may experience slower growth due to conflict and lower oil output.
The report, titled “Jobs and Women: Untapped Talent, Unrealized Growth,” emphasizes that greater economic progress could be achieved by harnessing the full potential of women in the workforce. Despite notable educational and skill advancements, only one in five women in the region participate in the labor market — the lowest rate globally.
“I urge bold action—not partial measures,” said Ousmane Dione, World Bank Vice President for the MENAAP region. “Unlocking women’s full potential requires tackling every barrier to inclusion through comprehensive reforms. A dynamic private sector that generates jobs and empowers aspirations is vital for meaningful progress.”
Through detailed analysis of household choices, social norms, legislation, and private sector roles, the report quantifies how much MENAAP economies could gain by removing barriers to women’s participation. The findings suggest no other region could gain as much economically from such inclusion.
“Raising female labor force participation could lead to substantial economic gains,” noted Roberta Gatti, Chief Economist for the MENAAP region. “Eliminating the obstacles that prevent women from working could increase GDP per capita by 20% to 30% in countries like Egypt, Jordan, and Pakistan.”
Source: World Bank Group