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by Stefan J. Bos, Worthy News Chief International Correspondent

DUBAI/JERUSALEM (Worthy News) – Days after U.S. President Donald J. Trump oversaw renewed peace efforts in Israel and predicted a “new dawn” for the Middle East, the International Monetary Fund (IMF) raised its 2025 economic growth forecast for the region but cautioned that global risks continue to weigh on the outlook.

The IMF lifted its 2025 gross domestic product (GDP) growth forecast for the Middle East and North Africa (MENA) region to 3.3 percent, up from 2.6 percent projected in May.

“The outlook this year reflected a resilience, despite the fact that we live in elevated global uncertainty and a situation where trade tariffs affected most of the world and the geopolitical tensions are still there,” said Jihad Azour, director of the IMF’s Middle East and Central Asia department.

The improved forecast follows a series of diplomatic breakthroughs in the region, including Trump’s mediation of a ceasefire between Israel and Hamas and ongoing talks aimed at wider regional normalization.

The IMF said reduced regional instability has helped improve investor sentiment and tourism recovery across parts of the Middle East.

However, the organization warned that global trade disruptions, inflation pressures, and energy-market volatility could limit growth momentum.

It also urged governments to continue fiscal reforms and diversification efforts to reduce reliance on hydrocarbons, which still dominate many regional economies.

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