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[INTERNATIONAL] · Saudi Arabia, Iran, Yemen · 18 sources

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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.

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Antigua and Barbuda · Bank of Ghana · Eswatini · Ghana · International Monetary Fund · Iran · Jihad Azour · Saudi Arabia · Yemen · Zambia

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