Growth across the Middle East and North Africa (MENA) region and Pakistan is exceeding expectations this year, lifted by resilient domestic demand, stronger oil output and steady remittance and tourism flows. The assessment came during the International Monetary Fund (IMF) 2025 Annual Meeting, where Jihad Azour, Director of the Middle East and Central Asia Department, outlined the latest projections. The outlook, while still clouded by global uncertainty, reflects a region that has weathered external shocks better than anticipated.

“Output growth has held steady and inflation remained moderate or eased in most regions. Some of the global economy strength reflects temporary factors, such as firm, frontloading activity ahead of the tariff increases and adjusting inventories and supply chain, as well as significant investment in new AI technologies. As these factors fade, global demand may soften, which could affect our regions through trade, finance and commodity channels. Economic activity in the MENA region and Pakistan has been stronger than expected. We now project growth of 3.2% in 2025, up from 2.1% in 2024, and higher than our April forecast. Oil exporters have benefited from higher oil output following the faster unwinding of OPEC+ cuts. Oil importers and Pakistan have gained from low energy prices, strong remittances and a vibrant tourism sector, all supporting domestic demand,” said Azour.