Prolonged War, Renewed Disruptions Pose Biggest Risk to Middle East Region, IMF Says
The International Monetary Fund (IMF) projects 4.7 percent global inflation for 2026, requiring vulnerable nations to prioritize fiscal restraint amid ongoing energy supply disruptions, officials stated.
- On Tuesday, the International Monetary Fund warned that low-income developing countries face an energy shock from the Iran war and have "no choice" but to cut spending or face debt restructuring.
- The ongoing US-Iran conflict has sent energy prices soaring as Tehran's retaliatory action targeted Washington's Gulf allies, curtailing oil supplies and bleeding into fertiliser and other sectors.
- Oil-Importing nations lacking exposure to the artificial intelligence boom are most vulnerable, Koeva Brooks noted, as consumption baskets heavily weighted toward energy and food make adjustments "much much more difficult."
- Conversely, the IMF raised its 2026 global growth forecast to 2.1 per cent, with advanced economies in AI supply chains like Taiwan and South Korea posting significantly higher figures.
- Intense El Nino activity in the Pacific raises climate risks that have already pushed up prices for rice and beverages, compounding pressure on vulnerable regions already strained by energy and debt crises.
60 Articles
60 Articles
IMF Warns Prolonged Middle East War Could Deepen Economic Crisis Across Region
The International Monetary Fund (IMF) has warned that a prolonged war in the Middle East and renewed disruptions to energy supplies, shipping routes and critical infrastructure pose the biggest risks to regional economies, as governments face mounting pressure from higher costs and economic uncertainty. Jihad Azour, the IMF’s director for the Middle East and Central […]
Prolonged war, renewed disruptions pose biggest risk to Middle East region, IMF says
By Andrea Shalal BANGKOK, Oct 15 (Reuters) – Prolonged war in the Middle East and further disruptions to energy production, shipping routes or critical infrastructure pose the biggest risk to economies in the Middle East and Central Asia, the International Monetary Fund said on Thursday. Jihad Azour, the IMF’s director for the Middle East and Central Asia, told reporters the war was imposing a highly uneven economic shock to the broader region…
For a long time, global inequality has declined, but the recent war of the United States in the Middle East reverses this trend.
In its latest World Economic Outlook report, the International Monetary Fund (IMF) raised its forecast for the average global oil price this year and 2027 by 7.2 percent and 11 percent, respectively, compared to the July WEO. The adjustment is even more drastic compared to April: +16.4 and +15 percent, respectively. According to the organization, the average oil price may only decrease by about 8.7 percent next year.
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