Arab Region’s GDP Exceeds $3.5 Trillion in 2024

The Arab region’s GDP rose past $3.5 trillion in 2024 and is expected to continue expanding to reach $3.8 trillion in 2025, according to the latest report by the United Nations Economic and Social Commission for Western Asia (ESCWA). The report projects a 4.1% growth rate for the region next year, driven by economic diversification, private sector development, and investment in digital and green economies.

Despite these gains, ESCWA highlights persistent challenges, including high unemployment and inflation rates in some Arab nations. Inflation across the Arab region rose to around 12% in 2024, and is expected to decline to 8.5% in 2025.

The report also points to disparities in economic performance among Arab nations, with Gulf Cooperation Council (GCC) countries maintaining stronger growth trajectories compared to oil-importing nations facing higher fiscal pressures. Additionally, ESCWA emphasised the role of digital transformation and climate adaptation strategies in sustaining long-term economic progress.

The findings were presented at ESCWA’s annual economic outlook, which provides a comprehensive analysis of economic trends shaping the Arab region. The report underscores the need for policy measures that enhance sustainable development and ensure inclusive economic growth.