World Bank Forecasts Modest Yet Fragile Recovery for the Middle East in 2021

In its January 2021 Global Economic Prospectus, the World Bank estimates the Middle East and North African region to recover and grow 2.1% year-on-year (YoY) in 2021, compared to a 5.0% contraction estimated for 2020. The report states that this forecast reflects the 'lasting damage from the pandemic and low oil prices'.

According to the World Bank, oil exporters within the region are set to recover to 1.8% YoY Ied by normalising oil demand, scheduled easing of OPEC + oil production cuts, policy support. The anticipated gradual phasing out of domestic pandemic-led restrictions is also expected to contribute to the improvement in regional economic growth in 2020.

Amongst the Middle Eastern nations, the strongest anticipated growth for 2021 is set to come from Qatar with...