The Arab Monetary Fund has issued the 21st edition of its Arab Economic Outlook report, reviewing recent developments and providing forecasts for Arab economies in 2025 and 2026, with regional growth expected to strengthen while inflation continues to ease. The report estimates GDP growth of 3.8% in 2025 and 4.3% in 2026, up from 2.2% in 2024, citing ongoing economic reforms, income diversification efforts, and an improving financing and investment environment. Inflation is projected to fall to about 20.8% in 2025 and 14.2% in 2026 from 31.9% in 2024, while inflation excluding countries facing exceptional price pressures is forecast at 7.6% in 2025 and 5.6% in 2026. It also sets out fiscal and monetary policy priorities focused on fiscal sustainability, revenue diversification, and more efficient public spending.