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IMF expects MENA inflation to ease in 2025 and 2026

image sourced from original article at https://www.arabnews.com/node/2619659/business-economy

The International Monetary Fund forecasts that inflation across the Middle East and North Africa will ease in the coming years, dropping to 12.2 percent in 2025 and 10.3 percent in 2026, helped by lower energy costs and fiscal reforms. Gulf economies are expected to maintain some of the lowest inflation rates globally, with Saudi Arabia and the United Arab Emirates projected to see stable consumer prices. However, several countries in the region, including Iran, Sudan, and Egypt, will continue to experience double-digit inflation, though rates are expected to moderate.

Economic growth in the region is set to accelerate, with the Middle East and North Africa's gross domestic product projected to expand by 3.3 percent in 2025 and 3.7 percent in 2026. The Gulf Cooperation Council is forecast to see even stronger growth, supported by higher oil output and resilient domestic demand. The International Monetary Fund notes that the region has shown resilience in the face of global uncertainty and geopolitical tensions, but warns that ongoing risks could affect future growth.

Original article source: https://www.arabnews.com/node/2619659/business-economy
Source Id: 2025-10-868320772

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