IMF warns war hurts regional growth, forecasts 1.3% 2026
The IMF is sounding the alarm: the prolonged war in the Middle East is shaking up local economies across the broader Middle East and Central Asia region.
With energy production and shipping routes disrupted, countries are running low on economic buffers.
Jihad Azour, the IMF's director for the Middle East and Central Asia, shared that the Middle East, North Africa and Pakistan region could see its economy shrink by 1.3% in 2026, but there is hope for a rebound to 6.6% growth in 2027.
Oil exporters hit, importers steadier
Oil-exporting countries directly affected by the war are expected to face tough times this year but might bounce back as things stabilize.
Meanwhile, oil-importing nations and places like the Caucasus and Central Asia are handling the crisis better, even with some inflation worries.
Growth there could slow from 6.2% in 2025 to around 5% by 2027.
Jihad Azour urges price stability, buffers
Azour suggests these countries should focus on keeping prices stable and rebuilding their financial safety nets to stay strong against future shocks.
The message: resilience and smart planning will be key moving forward.