neighbouring countries like Jordan and Egypt have been affected by declines in tourism receipts and fiscal revenues ,” said the World Bank in its MENA Economic Update .
Conflict casts a long shadow on the development trajectories of countries . The report estimates that GDP per capita in conflict-affected countries in MENA could have been on average 45 per cent higher , measured seven years after the onset of conflict . Such a loss is equivalent to the average progress made by the region over the last 35 years .
“ Peace and stability are the foundation of sustainable development ,” said Ousmane Dione , World Bank Vice- President for the Middle East and North Africa . “ The World Bank Group is committed to remaining engaged in the conflict-affected areas of the Middle East and North Africa , and to building a future worthy of all people of the region .”
Windows of opportunity
The report also looks at key windows of opportunity where countries can rapidly advance inclusive growth by accelerating reforms . This includes rebalancing the footprint of the public and the private sectors , better allocating talent in the labour market , closing the gender gap and promoting innovation .
Despite the significant gains in levels of education over the last 50 years , the rate of female labour force participation in the Middle East and North Africa stands at 19 per cent — the lowest in the world . Closing gender employment gaps would result in a remarkable 51 percent increase in per capita income in the typical MENA country . For economies to thrive , women must be included , said the World Bank ’ s
Closing gender employment gaps would result in a remarkable 51 per cent increase in per capita income in the typical MENA country
Image : Unsplash .
‘ Growth in the Middle East and North Africa ’ report .
“ Transforming the role of the state would lead to substantial gains in productivity ,” outlined Roberta Gatti , World Bank Chief Economist for the Middle East and North Africa . “ For example , the region has the largest share of public sector employees in the world , particularly women . But unfortunately , in MENA , a larger public sector does not necessarily correspond to better public goods and services . Mobilising talent towards the private sector would improve the allocation of resources , with aggregate productivity gains of up to 45 percent .”
According to the World Bank , tapping into the frontier of global knowledge and technology will also boost growth in MENA . More international trade , leveraging the region ’ s strategic geographic location , can facilitate this process of infusion and innovation . Improving data quality and transparency — which are lagging behind by international standards — is another key lever to facilitate the diffusion of ideas .
GCC country outlook
The GCC region is estimated to see subdued economic growth of 1.6 % in 2024 but is forecast to grow at 4.2 % in 2025-2026 , according to the Autumn edition of the World Bank ’ s Gulf Economic Update . Growth
32 | ismr . net | ISMR December 2024 / January 2025