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The International Monetary Fund warned that prolonging the war in the Middle East and the resurgence of disruptions in energy production and infrastructure pose the greatest threat to the region's economies. It expects the Middle East and North Africa's economy to shrink by 1.3% in 2026 following a 3.3% growth in 2025, with a projected recovery of 6.6% in 2027. The IMF confirmed that oil-exporting countries will experience a significant contraction this year before rebounding, while oil-importing economies appear more resilient. It also pointed to the depletion of oil reserves and a decline in productive capacity, with cautions about long-term impacts on oil prices and infrastructure, urging the region to strengthen its ability to withstand future shocks.
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