Conflict takes economic toll on Middle East
World Bank projects a 2.1% contraction in output across the Middle East, North Africa, Afghanistan and Pakistan (MENAAP). The institution says the impact is greater on oil-exporting Gulf countries affected by the closure of the Strait of Hormuz. The post Conflict takes economic toll on Middle East appeared first on ANBA News Agency .
The ongoing conflict between the United States, Israel, and Iran has led to significant economic challenges across the Middle East, North Africa, Afghanistan, and Pakistan (MENAAP), with oil-exporting Gulf countries facing the most severe consequences. According to the World Bank, the region is expected to experience a 2.1% contraction in output this year, down from 3.3% growth in 2025, with Gulf Cooperation Council countries facing a 4.3% contraction.
The conflict has impacted various sectors beyond energy, including tourism, aviation, and logistics, and is driving up inflationary pressures driven by higher food prices. Transport disruptions are also straining supply chains and increasing import costs. However, the World Bank predicts that if the conflict subsides by the end of this year, regional growth could rebound to 7.8% in 2027, primarily due to a recovery in hydrocarbon production and exports.
The report, titled "From Divide to Opportunity: AI, Jobs, and Growth," also highlights the potential for artificial intelligence to boost productivity in up to 20% of jobs in the region, presenting new opportunities for economic growth amidst the conflict's challenges.
Brief written by urgent.news from ANBA News Agency's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
