Mena, Pakistan weather global headwinds as IMF lifts outlook

GDP NOW PROJECTED TO ESPABD BY 3.2% THIS YEAR, UP FROM 2.1% IN 2024

- BY NIVETHA DAYANAND Assistant Business Editor

Economic activity across the Middle East and North Africa as well as Pakistan has held up better than expected in 2025, prompting the International Monetary Fund to raise its regional growth forecast.

The region’s GDP is now projected to expand by 3.2 per cent this year, up from 2.1 per cent in 2024 and a 0.6-percentage-point increase from the Fund’s May outlook.

Growth is expected to accelerate further to 3.7 per cent in 2026, driven by stronger oil production, resilient domestic demand, and steady progress on structural reforms.

‘Remarkable resilience’