The Middle East, North Africa (MENA) region and Pakistan are experiencing stronger-than-expected economic growth in 2025, according to the International Monetary Fund (IMF).
Jihad Azour © IMF
The Middle East, North Africa (MENA) region and Pakistan are experiencing stronger-than-expected economic growth in 2025, according to the International Monetary Fund (IMF).
At the IMF’s Annual Meetings, Jihad Azour, Director of the Middle East and Central Asia Department, said regional output is now projected to grow 3.2% in 2025—up from 2.1% in 2024—driven by resilient domestic demand, rising oil output, remittances, and tourism.
Oil exporters have benefitted from the loosening of OPEC+ production cuts, while importers and Pakistan gained from lower energy prices and robust consumption.
Growth in the wider MENAP region is forecast to reach 3.7% in 2026, while the Caucasus and Central Asia (CCA) is projected to expand 5.6% this year before easing to 4% over the medium term.
Azour cautioned that downside risks persist, including global financial tightening, inflationary pressures, and geopolitical shocks. However, he emphasized that current stability gives countries a narrow window to rebuild fiscal buffers and advance reforms.
“To ensure long-term resilience, countries should strengthen fiscal frameworks, reinforce monetary credibility, and accelerate structural reforms,” Azour said. The IMF reaffirmed its commitment to the regions, highlighting $56 billion in financing and 385 capacity-building projects since 2020.
Further regional insights will be shared at the IMF’s Economic Outlook launches in Dubai (October 21) and Almaty (October 30).
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