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IMF predicts 2026 Middle East contraction
The International Monetary Fund expects the economy of the Middle East, North Africa, and Pakistan to contract by 1.3% in 2026 as a result of the effects of the war that began between the United States and Israel against Iran, which impacted energy production, trade, and tourism. Growth is expected to resume at 6.6% in 2027; however, forecasts warn of a potential slowdown if disruptions continue. It is emphasized that although the impact of the war has been significant, it has also been varied. There remains a general atmosphere of uncertainty due to instability in the energy and trade markets, with risks including rising energy prices and pressures on external financial conditions.
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