MENAP economy projected to contract 1.3% in 2026; 2027 rebound conditional on easing war and normalized trade
The MENAP region's economy is projected to contract by 1.3% in 2026, nearly 3 percentage points below April's forecast. Growth could rebound to 6.6% in 2027 if the Middle East war subsides and trade normalizes, supported by a recovery in Gulf oil exporters.