World Bank Forecasts Severe Economic Contraction for Gulf Economies Amid Regional Conflict

The World Bank has released a report projecting a 2.1% economic contraction for the Middle East, North Africa, Afghanistan, and Pakistan region in 2026. Gulf Cooperation Council (GCC) states are expected to be particularly hard-hit, with an average contraction of 4.3%, due to the ongoing regional war. Qatar and Kuwait are forecast to experience the most significant declines, with GDP contracting by 20.9% and 14.6% respectively. The report suggests a potential rebound to 7.8% in 2027 if the conflict ends this year.