What happened?
The World Bank expects a 2.1% contraction across the Middle East, North Africa, Afghanistan and Pakistan region in 2026, after growth of 3.3% in 2025.
Background
It links the sharp downgrade to the conflict that began in February and the disruption of energy flows through the Strait of Hormuz.
Why it matters
Regional averages conceal major differences between oil exporters and importers, making country-level comparisons essential.
What to watch
Energy and trade conditions remain key drivers of the outlook.