IMF cuts 2026 forecast, Middle East, Central Asia shrink 0.3%
The IMF just cut its 2026 forecast for the Middle East and Central Asia and now expects the region's economy to shrink by 0.3% instead of growing.
The big reason? Ongoing conflict since February, especially the closure of the Strait of Hormuz, a trade route that's basically a lifeline for oil exports, has thrown shipping and production into chaos.
Oil infrastructure damage hits regional economies
Countries like Iraq, Kuwait, Qatar, and Bahrain are facing double-digit economic drops because their oil infrastructure suffered damage.
Saudi Arabia is also set for a 3.3% dip this year, but could bounce back strong in 2027.
The UAE is bracing for a 3.9% contraction, while Oman stands out with rare growth at 2.4%.
Iran's economy is hit even harder with a steep 7.6% decline due to blockades and sanctions.
The region's economy is set to shrink by 0.3%.