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Shifting Gears: The Private Sector as an Engine of Growth in the Middle East and North Africa
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April_2025 Middle East and North Africa Economic Update
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Middle East and North Africa Economic Update
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The MENA region grew at 1.9 percent in 2024 and is expected to grow at 2.6 percent in 2025. This is against a backdrop of increased global uncertainty, particularly in trade policy. The region is far from the frontier in standards of living, largely due to low productivity. The private sector is a critical engine of productivity growth: Businesses create jobs, boost livelihoods, and innovate. The MENA private sector is not dynamic and is ill prepared to absorb shocks. To boost the performance of the private sector, governments in the region may need to rethink their role in engaging with markets including improving competition, the business environment, and the availability of data. Additionally, private sector businesses in the region can increase performance through better management practices and harnessing untapped talent in the region.
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