Faster growth in the Gulf region, driven by rising oil production, led the International Monetary Fund to boost its growth forecast for the Middle East and Central Asia.
The economies of the region are now forecast to expand by 3.5% in 2025, with all the Gulf countries expected to grow faster than previously forecast. Saudi Arabia in particular is set to grow by 4% this year and next, a significant uplift from April when the IMF’s more pessimistic outlook was that US President Donald Trump’s sweeping tariffs and broader retreat from international cooperation would weigh on global growth.
The impact of disruptions to shipping in the region and conflicts is also expected to abate.
Still, the agency’s forecast for the region is lower than it was a year earlier due to “indirect effects of subdued world demand on commodity prices,” it said in a report.