World Bank economists project a 2.2% growth rate for the Middle East and North Africa (MENA) region in 2024, according to the latest MENA Economic Update. This slight increase from the previous year conceals significant differences between high-income oil exporters and other developing economies within the region. The report highlights that real GDP growth forecasts have been notably reduced due to ongoing regional uncertainties, including conflict in Gaza and potential escalations in neighboring areas.
The update focuses on the Palestinian economy, particularly highlighting an estimated 86 percent contraction in Gaza's real GDP and a 23 percent decline in the West Bank. These figures reflect the severe impact of conflict on both local economies and broader regional stability.
Further analysis is provided on factors influencing MENA's long-term growth potential. The report discusses increased conflict frequency and severity as major challenges, while also suggesting strategies for economic acceleration. These include boosting female labor force participation, shifting talent from public to private sectors, and utilizing geographic advantages for enhanced international trade.
Despite current challenges, the report identifies opportunities for growth that could lead to a more prosperous future for the MENA region.