"Shut up" It expects the Arab region’s economy to grow by 3.7 percent in 2026
Beirut, February 25 / WAM / The United Nations Economic and Social Commission for Western Asia (ESCWA) expected the Arab region’s economic growth rate to rise from 2.9 percent in 2025 to 3.7 percent during the current year.
This came in a report issued by ESCWA under the title “Macroeconomic Prospects in the Arab Region,” in which it monitored growth trends in a global context characterized by escalating uncertainty as a result of increasing geopolitical turmoil and worsening financial pressures.
The report explained that inflation in the Arab region is likely to decline from 8.2 percent in 2025 to 5.4 percent by 2027 due to the decline in commodity prices, the normalization of supply chains, and the expectation of growth in the region’s overall exports, supported by an increase in non-oil exports.
The report showed a difference in expectations between groups of Arab countries, as high-income countries are expected to achieve growth in gross domestic product from 3.3 percent in 2025 to 4.2 percent in 2026, with support from economic diversification efforts, while middle-income countries are expected to witness an increase in their economic growth from 2.8 percent in 2025 to 3.3 percent in 2026, with a subsequent gradual improvement despite the continued challenges of debt and inflation. On the other hand, low-income countries face pressures. Severe financial and humanitarian conditions, with a limited recovery expected in 2026 and 2027 after a contraction of 0.9 percent in 2025.
The report shed light on the humanitarian challenges in Gaza, revealing that estimates indicate that the cost of reconstruction in the Strip may reach about $70 billion, in light of the massive loss of life and the destruction of about 78 percent of its buildings.
The report called on Arab countries to continue to diversify their economies, enhance investment in human capital, technology and digital transformation, improve public financial management and enhance local revenues while directing aid and investments in line with national priorities, especially in countries affected by conflicts, enhancing the flexibility of labor markets and creating sustainable job opportunities in light of accelerating technological transformations.
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