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IMF predicts 2026 Middle East recession
The International Monetary Fund expects the economies of the Middle East, North Africa, and Pakistan to shrink by 1.3% in 2026 as a result of the repercussions of the US-Israeli war on Iran. This has impacted sectors such as energy, shipping, tourism, and trade, with a strong recovery expected in the following year at 6.6%. However, the outlook remains "highly uncertain," with warnings about ongoing energy disruptions and their effects on growth and inflation, as well as varying degrees of damage between oil-exporting and oil-importing countries.
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