The Jerusalem PostEconomy
Middle East Economy to Shrink 2.1% in 2026, World Bank Forecasts
Summarized from The Jerusalem Post by baba
Center-rightNeutral tone
The World Bank forecasts the Middle East's economy will shrink by 2.1% in 2026, with Gulf economies contracting by 4.3% due to factors like the Strait of Hormuz blockade and inflation. Qatar and Kuwait are expected to be the hardest hit, while Iraq and Iran face significant GDP declines. The report projects a potential 7.8% rebound in 2027 if the conflict ends this year, but warns of further risks from extreme weather impacting food security.
The story in 6 lines · by baba
- Middle East economy to shrink 2.1% in 2026, with Gulf economies contracting 4.3%, World Bank forecasts.
- Qatar and Kuwait face the hardest economic hits, with GDP contractions of 20.9% and 14.6% respectively.
- Gulf oil production has fallen significantly, contributing to inflation and reduced natural gas output in Qatar.
- Iraq and Iran face sharp GDP declines, with Iran's inflation surging to 89% by August 2026.
- A 7.8% regional economic rebound is projected for 2027 if the conflict ends this year.
- Extreme weather events like El Niño pose a threat to food security in the region.
The Jerusalem Post publishes in English. The key points are summarized above. Read The Jerusalem Post’s full report from the link at the top of the page.