The recent International Monetary Fund (IMF) report shed light on positive economic growth predictions for the Middle East and North Africa for the years 2025 and 2026, but at a less optimistic pace than the last report issued in October 2024. The IMF refer its reduction in optimism on rising trade tensions, prevailing uncertainty in economic policies, and expected cuts in oil production in the region. It stated, “We expect growth to strengthen in 2025 and 2026 in the Middle East and North Africa, but at a slower pace than was anticipated last October.” It added that escalating trade tensions and unusual ambiguity in global policies further exacerbate the impacts of conflicts and extended oil production cuts, weakening growth prospects in both the Middle East and Asia. The Fund commented: Policymakers must adapt to this new environment by prioritizing macroeconomic stability and accelerating structural reforms to seize global opportunities.
The Fund’s report indicates that the economic impacts of uncertainty are more pronounced in the Middle East and North Africa and in the former Soviet states than anywhere else, partly due to reduced resilience such as high public debt and weak institutions. The findings highlight the need for structural reforms to enhance economic resilience and mitigate the impacts of uncertainty.
The Fund projected that the economic growth rate in the Middle East and North Africa would hover around 1.8 percent in 2024, rising to 2.6 percent and 3.4 percent in 2025 and 2026, respectively.
In Jordan, the report forecasted that the economic growth rate would reach 2.5 percent in 2024, rise to 2.6 percent in 2025, and continue to increase to 2.9 percent in the following year, 2026.
The IMF estimates Jordan’s GDP growth at 2.6% for 2025
