IMF Sees 1.3% Contraction in Middle East, North Africa and Pakistan in 2026 - BusinessWorld Online
- On Thursday, the International Monetary Fund forecast a 1.3% economic contraction for the Middle East, North Africa, and Pakistan this year due to the US-Israeli-led war against Iran, with the regional outlook released in Dubai.
- Disruptions to energy production and shipping from the US-Israeli-led war against Iran hit oil-exporting economies hardest, while impacts on tourism, trade, and confidence significantly reduced regional output.
- Economies exporting Oil faced severe challenges, while oil importers proved more resilient, benefiting from domestic demand supported by remittances, tourism, and prompt policy responses protecting consumers.
- Growth in the Caucasus and Central Asia is moderating toward a sustainable pace, with the IMF forecasting 5.2% economic output growth in 2026 and 5% in 2027.
- Assuming the conflict abates early in 2027, the IMF anticipates a sharp rebound to 6.6% growth for the Middle East, North Africa, and Pakistan, though further energy disruptions could worsen the outlook.
25 Articles
25 Articles
The International Monetary Fund (IMF) projected a 1.3 per cent contraction in economic output in the Middle East, North Africa and Pakistan during 2026, affected by the consequences of the American-Iranian war, particularly on energy production, shipping, tourism, trade and economic confidence.
IMF sees 1.3% contraction in Middle East, North Africa and Pakistan in 2026
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IMF sees 1.3% contraction in Pakistan, Middle East and North Africa in 2026
IMF expects output to rebound sharply to 6.6% in 2027.Middle East conflict likely to abate in early 2027: IMF.Urges policymakers to prioritise maintaining price stability.DUBAI: The International Monetary Fund on Thursday forecast a...
The IMF projected that the economy of the Middle East, North Africa and Pakistan would contract by 1.3 percent in 2026 due to the effects of the war on Iran, before a 6.6% expected recovery in 2027, warning of the risks of continued disruptions in energy production.
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