World Bank cites Middle East conflict worsening economy
The World Bank report assesses the economic impacts of the conflict in the Middle East, forecasting a regional GDP contraction of 2.1% in 2026, following a growth rate of 3.3% in 2025. This decline is attributed to the closure of the Strait of Hormuz, the deterioration of tourism, aviation, and logistics sectors, as well as rising inflationary pressures and increasing import costs. Data also indicate that oil-exporting Gulf economies will decline by 4.3%, while oil-importing countries are expected to grow by 4.3%. Growth is projected to recover to 7.8% in 2027 if the conflict diminishes. Emphasizing the importance of protecting households, supporting infrastructure, and investing in technology—especially artificial intelligence—is crucial for boosting productivity and mitigating the long-term effects of crises.
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