started · updated
IMF warns Middle East economies face prolonged recovery from regional war
The International Monetary Fund (IMF) has issued a warning regarding the economic stability of the Middle East and Central Asia, citing the profound risks posed by prolonged warfare and disruptions to critical infrastructure. Jihad Azour, the IMF’s director for the Middle East and Central Asia, noted that the ongoing conflict involving Iran, Saudi Arabia, and the Houthi movement is creating a scarring effect that will likely prevent regional economies from returning to their pre-war growth trajectories in the medium term.
The IMF projects a 1.3% economic contraction for the Middle East, North Africa, and Pakistan region in 2026. Saudi Arabia is expected to be particularly affected, with a projected economic contraction of 3.3%. While oil-exporting nations face significant short-term challenges, the IMF anticipates a strong, albeit uneven, recovery in 2027, with growth potentially reaching 6.6% as energy production and trade normalize.
Beyond the Middle East, the IMF’s October 2026 World Economic Outlook highlights diverse global trends. While some regions like Southeast Asia may see growth boosts from artificial intelligence investments, other areas face pressures from rising energy costs and geopolitical instability. The Fund has also urged advanced economies to address rising public debt levels amid spiking bond yields.
Entities
Antigua and Barbuda · Bank of Ghana · Eswatini · Ghana · International Monetary Fund · Iran · Jihad Azour · Saudi Arabia · Yemen · Zambia
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 4 SOURCES] Jihad Azour stated that Middle Eastern economies are unlikely to return to pre-war growth trajectories in the medium term due to the scarring impact of the conflict. thediplomaticinsight.com · srnnews.com · www.al-monitor.com
- [● 3 SOURCES] Prolonged war and disruptions to energy production and shipping routes are the primary risks to Middle Eastern and Central Asian economies. thediplomaticinsight.com · srnnews.com · www.al-monitor.com
- [● 3 SOURCES] The Middle East, North Africa, and Pakistan region is expected to see a growth rebound of 6.6% in 2027. srnnews.com · www.al-monitor.com
- [● 2 SOURCES] Saudi Arabia's economy is projected to contract by 3.3% in 2026. thediplomaticinsight.com
- [● 3 SOURCES] The IMF forecasts a 1.3% economic contraction for the Middle East, North Africa, and Pakistan region in 2026. srnnews.com · www.al-monitor.com