The World Bank downgraded its Middle East growth forecast on April 9, 2026. Regional GDP growth for 2026 is now projected at 1.8%. This figure marks a sharp decline from the 4% growth estimated in 2025.
The report cut the growth forecast for Gulf Cooperation Council (GCC) countries to 1.3%. Lower projected hydrocarbon revenues primarily drove this revision. Recent conflict has disrupted energy markets and increased financial volatility for oil and gas producers.
These shifts signal negative impacts on the economic fundamentals of key oil-producing nations. This volatility introduces uncertainty for energy sector investors and major ETFs like VDE.